Indian Economy News

India to be third largest steel maker by next year

Mumbai: India would become the third largest steel maker, with an installed capacity exceeding 110 million tonnes per annum (mtpa) by next year when the ongoing expansion projects of SAIL and some private steel makers come on stream. This is in line with the Narendra Modi-led NDA government's target of achieving steel-making capacity of 300 mtpa to make India the second largest producer of steel in the world by 2025, overtaking US, Japan and European Union.

With the economy coming out of its worst slowdown in years, all major steel makers such as Tata Steel, JSW and SAIL have made detailed presentations to the government to add an additional 100 mtpa of steel-making capacity with an investment of over Rs 6 lakh crore ($100 billion) in just over 10 years.

India's current steel production capacity stands at 96 mtpa and produces 81 mtpa of finished steel and 72 mtpa of finished products.

A CEO of a private sector steel firm told TOI, "The government invited us for discussions on capacity expansions to reach 300 mtpa by 2025. We have shared our expansion plans with them. The ministry promised to remove the bottlenecks."

This includes a Rs 1.50-lakh-crore investment by state-owned SAIL alone, which would enable it ramp up capacity to 50 mtpa by 2025 and emerge as India's largest steel maker.

In the private sector, Sajjan Jindal-led JSW Steel plans to invest Rs 1.32 lakh crore to ramp up its steel-making capacity to 40 mtpa to be India's largest private sector steel manufacturer.

Similar investments are lined up by his brother Naveen Jindal's firm, Jindal Steel and Power (JSPL), to reach a capacity of 30 mtpa.

Tata Steel is spending Rs 40,000 crore to scale up its steel-making capacity by another 6 mtpa to reach a capacity of 35 mtpa in the coming years.

The government also plans to revive projects of global steel makers Posco and Arcelor Mittal, which may add another 24 mtpa of capacity with investments of over Rs 1,00,000 crore.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

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