New Delhi: Steel sector in India is likely to see an investment of Rs 8,70,640 crore by 2020 to reach over 290 million tonne capacity, Steel Minister Ram Vilas Paswan said.
“The likely capacity achievable by 2019-20 will be over 290 million tonnes. Going by estimate of Rs4,000 crore investment per million tonne of additional capacity, the sector is likely to see an investment of Rs2,76,880 crore by 2012 and Rs8,70,640 crore by 2020,” the minister told reporters here.
The current steel production capacity is over 53 million tonnes.
The National Steel Policy had envisaged country’s total steel production to reach 110 million tonnes (MT) by 2020. A buoyed Paswan said the production is likely to reach 124 MT by 2012 on the back of expansion plans of the steel companies and a few greenfield projects in the pipeline.
He said the additional capacity enhancement in the sector would generate employment for around 40 lakh people.
As of now, both domestic and foreign steel players have signed 193 memoranda of understanding with states for setting up new units with a total planned capacity of around 243 MT and a total proposed investment of over Rs5,14,000 crore.
Paswan said private and public sector steel companies have embarked on capacity expansion. State-run SAIL’s crude steel production is expected to touch 24.84 MT by 2011-12 and 60 MT by 2020 from the present 12.84 MT, he added. Similarly, RINL’s crude steel production capacity will be enhanced from the present 2.90 MT to 6.80 MT by 2011-12 and 10 MT by 2020.
Private steel majors including Tata Steel, JSPL, Ispat and JSW Steel have also lined up expansion of their existing production capacities.