Inauguration of Steel Pavilion-IITF 2009, 14th November 2009
Ministry of Steel have set up a ‘Steel Pavilion’ in the 29th India International Trade Fair (IITF), 2009. The Public Sector Undertakings under the Ministry of Steel -SAIL, RINL, NMDC, MOIL, MECON Ltd., KIOCL, HSCL, MSTC and FSNL as well major private sector producers like TATA Steel, ESSAR and Jindal Steel & Power Limited and organisations under the Ministry like Joint, Plant Committee (JPC) and UNDP/GEF Project (Steel) and Institute for Steel Development and Growth (INSDAG) have set up their Stall in the ‘Steel Pavilion.
Shri A. Sai Prathap, Hon’ble Minister of State for Steel inaugurated the “Steel Pavilion” at 3.00 PM on the 14th November, 2009 and also released a publication entitled “Empowering India for Global Leadership’’. Speaking on the occasion the Hon’ble Minister elucidated that for the various steel companies and organisations, participating in the IITF under one roof is an enriching experience which gives all the member companies a chance to showcase their core areas, reach out to target audience, learn more from each other and exchange ideas. The IITF is a sound platform to draw interest from global and domestic customers, manufacturers, exporters, importers, dealers and other stakeholders.
The Hon’ble Minister brought out that increased steel usage will trigger a stimulus effect and usher in increased development. The opportunity in steel sector has brought in a large number of intending investors to commit nearly 276 million tonnes of additional steel production capacity in the country. This consists of nearly 222 Memoranda of Understanding(MoUs) signed between the investors and various State Governments mostly in the states of Orissa, Jharkhand, Chhattisgarh and West Bengal, amounting to Rs. 11 Lakh crore for creation of steel manufacturing capacity.
The Steel Sector is focusing on modernization and capacity expansion. Additional steel capacity in the country is being built up, both through expansion of existing units (brown field) and also through setting up of new units (greenfield). It is expected that, by the year 2012, India will be having a steel production capacity of 124 million tonnes, against the existing capacity of 65 million tonnes. By the year 2012 nearly 33 million tonnes capacity will be added up through brownfield capacity expansion and 26 million tonnes will consist of greenfield units. The progress of brownfield capacity expansion is quite satisfactory. During the year 2008-09, Tata Steel commissioned its 1.8 million tonnes per annum(mtpa) blast furnace at Jamshedpur. JSW Steel also commissioned 3.0 mtpa blast furnace at Vijaynagar in Karnataka, both through brownfield capacity expansions.
Brownfield capacity expansion of Steel Authority of India Limited (SAIL) is going on as per plan, at its five integrated Steel units(Bokaro, Bhilai, Durgapur, Rourkela and IISCO-Burnpur) as well as Alloy Steel Plant(Durgapur) and Salem Steel Plant. The expansion plan would increase its present capacity of 14.6 million tonnes of hot metal production capacity to a level of 26.18 million tonne per annum. RINL Visakhapatnam Steel Plant is also similarly undertaking its capacity expansion plan from 2.9 mtpa to 6.3 mtpa. The progress of the work is currently at an advanced stage and the first phase of the project will be completed by 2010 and the second phase by 2011. NMDC is setting up a 3.0 MTPA capacity integrated steel plant at Nagarnar, Chhattisgarh at an investment of about Rs.16000 crores. A number of other projects involving both major and medium steel units are in good progress. A number of greenfield projects such as Bhushan Steel and Bhushan Power & Steel have successfully commissioned their first stage work in Orissa. JSW Steel has made considerable progress in West Bengal. Many other greenfield projects have either acquired the required land or are in the process of acquiring the land for greenfield projects.
Despite soaring inputs prices, fluctuating market and the world economy in a state of flux, the Indian steel sector has remained buoyant. The various timely measures taken by the Government has helped the steel industry bounce back from the shadow of economic slowdown and record an impressive growth in steel production and consumption during the first two quarters of the current financial year. It is a great achievement that India attained third position in world steel production during the period January to September 2009. For security of coking coal, a joint venture company named International Coal Ventures Private Ltd, have been incorporated to acquire coal assets overseas. Restructuring, re-organizing and amalgamating the PSUs are also on the anvil for achieving economies of scale and vertical integration along with raw material security. The disinvestment in PSUs of Ministry of Steel is envisaged. Apart from SAIL, Ministry of Steel has identified MOIL and NMDC as the other potential PSUs which would be taken up for divestment/raising of additional equity. The Steel Ministry is focused on proactively developing a framework for overall growth of steel in the country.
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