Advantage India
Demand
Growth
* Being the third largest energy consuming country in the world, there is always increased demand for power and electricity in the country, and hence the surge in demand for coal.
* Demand for steel is likely to grow by ~10% as the government’s augmented focus on infrastructural development continues with increased construction of roads, railways, airports, etc.
* India has set the targets of achieving a total crude steel capacity of 300 million tonnes per annum (MTPA) and total crude steel demand/ production of 255 MTPA by 2030-31.
* The demand of zinc is expected to double in India in the next five to 10 years on the back of huge investments in infrastructure sector, including steel, International Zinc Association.
Attractive
Opportunities
* By becoming Aatmanirbhar in producing specialty steel, India will move up the steel value chain and come at par with advanced steel making countries like Korea and Japan.
* Under the PLI Scheme for Specialty Steel, 57 MoUs with 27 companies have been signed, attracting investments of US$ 3.55 billion (Rs. 29,500 crores), creating an additional capacity of 25 MT and generating employment for 17,000 people by FY 2027-28. As of December 2023, companies have invested US$ 1.55 billion (Rs. 12,900 crores), with an expected investment of US$ 360 million (Rs. 3,000 crores) in FY24. Five units have already commenced production, and nine more are set to begin operations in the last quarter of FY24.
Policy
Support
* Enactment of Mines and Minerals (Development and Regulation) Amendment Act, 2021 enabled captive mines owners (other than atomic minerals) to sell up to 50% of their annual mineral (including coal) production in the open market.
* In December 2023, the Ministry of Mines proposed capping performance security and upfront amounts for mining critical minerals to attract more bidders, reduce barriers to participation in auctions and expedite the process for mining leases.
Competitive
Advantage
* India holds a fair advantage in cost of production and conversion costs in steel and alumina.
* As of FY22, the number of reporting mines in India were estimated at 1,319, of which reporting mines for metallic minerals were estimated at 545 and non-metallic minerals at 775.
* India is the second-largest crude steel producer in the world.
* India is the 2nd largest Aluminium producer, 3rd largest lime producer and 4th largest iron ore producer in the world.
NMDC Ltd
Incorporated in 1958 as a Government of India fully owned public enterprise, NMDC is under the administrative control of the Ministry of Steel, Government of India. Since inception, it has been involved in the exploration of wide range of minerals including iron ore, copper, rock phosphate, limestone, dolomite, gypsum, bentonite, magnesite, diamond, tin, tungsten, graphite, beach sands etc. NMDC is India's single largest iron ore producer, producing about 40 MT of iron ore from four fully mechanised mines (Bailadila Deposit-14/11C, Bailadila Deposit-5, 10/11A (Chhattisgarh State), Donimalai Iron Ore Mine and Kumaraswamy Iron Ore Mine (Karnataka State)). Other than Iron Ore, NMDC is the only organised producer of diamond in India from its Majhgawan mine at Panna, Madhya Pradesh. The company has been categorised by the Department of Public Enterprises as "NAVRATNA" Public Sector Enterprise in 2008.
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Hindalco Industries Ltd
Hindalco Industries Limited, metals flagship company of the Aditya Birla Group, is the industry leader in aluminium and copper. Hindalco is the world’s largest aluminium rolling company and one of Asia’s biggest producers of primary aluminium. Its state-of-the-art copper facility comprises a world-class copper smelter and a fertiliser plant along with a captive jetty. The copper smelter is among the world’s largest custom smelters at a single location. Hindalco ranks among the global aluminium majors as an integrated producer and a footprint in 11 countries outside India. Hindalco has been accorded Star Trading House status in India. Its aluminium is accepted for delivery under the High-Grade Aluminium Contract on the London Metal Exchange (LME), while its copper quality is also registered on the LME with Grade A accreditation. In FY23, Hindalco produced 3.525 MT of alumina.
Read MoreVedanta Limited
Vedanta Limited is one of the world's leading diversified natural resources companies. The company’s main businesses focus on zinc, lead, silver, aluminium, copper, iron ore, oil & gas, and commercial power, while its operations span across India, South Africa, Namibia, Ireland, and Australia. The company holds industry-leading market shares across its core divisions. Vedanta Limited is a Vedanta Group company.
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Coal India
Coal India Limited (CIL) is a state-owned coal mining corporation which came into existence in November 1975. It has been awarded the status of Maharatna company. With its normal production of 79 million tonnes (MT) in the year of its establishment, Coal India Limited is today the world's largest coal producer. CIL circulated through 83 mining areas, seven full-owned coal producer subsidiaries and one mining scheme and consulting company spread across eight provincial states of India. CIL manages 200 other establishments such as workshops, hospitals. In addition, 21 training institutes and 76 vocational training institutes are also managed by CIL. Indian Institute of Coal Management (IICM), a state-of-the-art management training ‘Centre of Excellence’ is the largest corporate training institute, operated under CIL and conducts multi-disciplinary management development programmes.
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