The Indian steel industry plays an important role in the country's economic growth. The country has also gained an important position on the global steel map due to its giant steel mills, acquisition of global scale capacities by players, continuous modernization & up gradation of old plants, improving energy efficiency, and backward integration into global raw material sources. Global steel giants from across the globe have shown keen interest in the steel industry due to its phenomenal performance. A lot of new steel plants have been set up in the country due to huge foreign investments and state-of-the-art technology. Tata steel was the first steel plant established in the year 1907 in India. Some of the other steel plants in the country include Bhilai Steel Plant at Chattisgarh, Rourkela Steel Plant at Orissa, Durgapur Steel Plant at West Bengal to name a few. In 2010 India was ranked as the fourth largest producer of steel by the World Steel Association.
India is the world's fourth largest producer of iron ore. It has about 25 billion tonnes of good quality iron ore reserves—the sixth-highest in the world—with a reserves base of 9.8 million. Although lower than Brazil and Australia, this is considered abundant and is one of the important advantages of India's domestic steel industry.
Seeing the growth potential of the steel industry in India, many global steel players have been planning to enter the market or have announced their expansion plans for their Indian businesses. Arcelor Mittal and POSCO have planned mega Greenfield projects at various locations in India. Some other global players have aslo also entered strategic partnerships or joint ventures (JV) with Indian steel giants to capitalize on their existing client base in the region.
China Steel Corporation (CSC), one of the largest integrated steel makers in Taiwan, together with its co-investors, will invest US$ 178 million in a new plant to produce electrical steels in Bharuch district of Gujarat, according to Francis Kuo-Hsin Liang, Vice-Minister, Ministry of Economic Affairs, Taiwan.
Tata Steel is planning to set up a six million tonne (MT) steel plant The proposed six million tonne (MT) steel plant which Tata Steel is setting up at Kalinga Nagar, Orissa, will concentrate entirely on flat steel products, catering to the needs of the automotive industry and white goods. The first phase of this plant is expected to be operational by February 2014 and will see a total investment of up to Rs 25,000 crore (US$ 5.02 billion) of which the steel maker has already invested over Rs 10,000 crore (US$ 2 billion).
RINL, the corporate entity that runs the Vizag steel plant, has inaugurated a series of auxiliary units to expand its plant's capacity to 6.3 MT The project has been executed by Instrumentation Ltd, Kota and involved a cost of around Rs 10 crore (US$ 2.25 million).
Varia Engineering Works Pvt Ltd, Ahmedabad-based rolling mills manufacturing company, is setting up India's first 6-stand continuous cold rolling mill for stainless steel.
According to the latest report by RNCOS titled "Indian Steel Industry Outlook to 2012", the Indian crude steel production will grow at a compound annual growth rate (CAGR) of around 10 per cent during 2010-2013. Moreover, the Government is proactively providing incentives to boost economic growth by injecting funds in various industries, such as construction, infrastructure, automobile, and power will drive the steel industry in future. The report also shows that, steel consumption in India is expected to grow considerably in coming years as per capita finished steel consumption is far less than its regional counterparts.
References: RNCOS, Media reports, IBEF, Ernst & Young, Ministry of Steel
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