core sector communique

Foreign Investment in Steel Sector



The Union Minister of Steel Shri Beni Prasad Verma has said that Foreign Direct Investment (FDI) inflows into the country in the metallurgical sector during the last three financial years is given below, which shows that there is a net increase in foreign direct investment during 2010-11:-


Year                                                                     Amount of FDI Inflows


                                                       In Rs. Crores                In US$ Million

2008-09                                              4,152.56                   959.94

2009-10                                              1,999.30                   419.88

2010-11                                              5,023.34                  1098.14


Source: Department of Industrial Policy & Promotion, Ministry of Commerce.



In a written reply in the Lok Sabha today, he said that following are the major investments proposed by foreign steel producers in the Indian steel industry in the last three years:-


Proposals to set up steel plants in India

Producer              Proposed State    Proposed Annual Capacity  Proposed Investment (Rs cr)

Posco                         Orissa                12 mtpa                               52,000

Posco                      Karnataka               6 mtpa                               32,000

Arcelor-Mittal              Orissa               12 mtpa                               40,000

Arcelor-Mittal           Jharkhand            12 mtpa                                50,000

Arcelor-Mittal           Karnataka              6 mtpa                                30,000

NMDC-Severstal      Karnataka             5 mtpa         Both will jointly invest Rs 9,000 crore

Tata Steel-Nippon Steel  Jharkhand        60,000 tonnes                       2300




He said, in addition to these, the following are some of the other investments made by foreign investors in the Indian steel industry:


Shri Verma said that in order to monitor and coordinate various issues, concerning steel major investments in the country, an Inter Ministerial Group (IMG) has been constituted in July 2007 under the Chairmanship of Secretary (Steel), represented by other Ministries / Departments of the Central Government such as Industrial Policy & Promotion, Railways, Shipping, Road Transport & Highways, Mines, Environment & Forests, as well as the Chief Secretaries of the concerned State Governments. Inter Ministerial Group (IMG) on steel sector is a forum to coordinate, monitor and review issues affecting steel sector investments. The individual issues raised during the Inter Ministerial Group meetings are further dealt by the concerned Ministries/Departments and State Governments in accordance with the provision of the extant rules and policies.