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The Indian steel sector is well
placed to reach its production
target of 200 million tonnes by
the year 2020. While the per capita
consumption has grown from
31 kg in 2003 to 56 kg in 2011, it is
still less than 30 per cent of global
average, presenting significant
potential for growth. Further, the
12th Five-Year
Plan envisages an
investment of $1
trillion in infrastructure,
which
will boost the
demand for steel.
This was revealed
at the CII Steel Summit 2012
where private and public sector
steel makers discussed their
expansion plans.
But for India to attain this
growth, several infrastructural
and operational challenges needed
to be overcome. As Dilip
Oomen, Managing Director and
CEO, Essar Steel India Ltd, said, it
was imperative that government
policies be an enabler for growth
and called for transparency in
pricing, policy commitment and
raw material security.
Addressing the summit, Minister
of Steel Beni Prasad Verma
said that his ministry had prepared
an R&D roadmap that
sought to incentivise investments
in R&D by steel makers. He laid
stress on use of low-grade iron ore
and non-coking coal for steel
making. Steel Secretary D.R.S.
Chaudhury pointed
out that the
next few years
would be critical
for the long-term
development of
the sector. He
highlighted the
large number of infrastructure
projects underway to ease the
logistics woes of the steel industry.
Panelists from the government
and industry highlighted the
unique and special role played by
steel in any economy. For India to
grow at 8-9 per cent, it was imperative
that the steel sector grew at
10 per cent. The growth rate for
the last few years has been only 5-
6 per cent. Raw material security
was a key concern as the sector
targets 200 million tonnes by the
year 2020.
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