New Delhi: India is set to become the world’s second largest producer of steel before 2015-16 and the sector is likely to witness an investment of Rs8,70,640 crore by 2020, Steel Minister Ram Vilas Paswan said at the Economic Editors’ Conference here Wednesday.
“During 2006, India emerged as the fifth largest crude steel producing country in the world and is set to become the second largest global steel producer before 2015-16,” Paswan said.
“Going by the estimate of Rs4,000 crore investment per million tonne of additional capacity, the steel sector is likely to witness an investment of Rs2,76,880 crore by 2012 and Rs8,70,640 crore by 2020,” he said.
Paswan said as per provisional figures, crude steel output witnessed a 9.8% annual growth to 50.88 million tonnes in 2006-07. The total capacity increased to 56.84 million tonnes last fiscal, while the utilisation was 89%.
Projecting that India’s steel production will be nearly 124 million tonnes by 2012, Paswan said the country is likely to achieve an annual capacity of around 275 million tonnes by 2019-20.
The sector has emerged as a key investment destination for multinational steel giants like Mittal Steel and Posco, which have promised combined investment of more than Rs1,30,000 crore.
Domestic steel utilities have announced massive capacity expansions. SAIL and Rashtriya Ispat Nigam Ltd are executing corporate plans to increase their respective capacity to more than 24 million tonnes and 6 MT by 2011-12.
Private firms Tata Steel, Essar Steel and JSW would raise their capacity to 13 MT, 14.5 MT and 11 MT respectively.