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Steel majors face land acquisition problems
PM NEWS BUREAU
Wednesday, May 19, 2010, 12:48 Hrs  [IST]

Another major issue is the assurance of timely supply of raw materials like iron ore and coal through allocation of captive mines.

The inordinate delays in getting environment and forest clearances have really tested the patience of most of the promoters in the steel sector.

Last but not least is the Naxal menace in states like Chhattisgarh, Jharkhand, Orissa and West Bengal, which also reflect policy lacuna in the rehabilitation of tribals in these states.

If the state and Union governments together take care of the above hurdles, the total steel manufacturing capacity of India will cross 150 million tpa by 2015 and 300 million tpa by 2020.

If the government authorities fail to address these issues in time, as feared by steel producers, India will become a dumping ground for world steel producers, especially China.

Trends in Production, Consumption & Capacity Additions
Year
Production (million tonnes)
Consumption (million tonnes)
Capacity (million tpa)
2003-04
40.71
33.12
43.91
2004-05
43.51
36.38
48.00
2005-06
46.57
41.43
51.17
2006-07
52.53
46.78
56.84
2007-08
56.13
52.18
59.85
2008-09
56.16
53.35
64.40
2009-10
NA
NA
72.70
 
                 
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