New Delhi: Steel seems to have outplayed other sectors in wooing investments, both foreign and domestic, as the sector is set to attract investment worth about Rs 3,00,000 crore within the next five years.
“Our steel sector is booming and has emerged as a key investment destination for multinational steel giants like Mittal Steel and Posco. The investment promised by these companies alone total to more than Rs 1,30,000 crore with others making a beeline to invest here,” a top Steel Ministry official told PTI.
“Going by the ballpark estimate of Rs 4,000 crore investment per million tonne of additional capacity, an investment of Rs 2,76,880 crore is expected by 2011-12 and Rs 8,70,640 crore by 2019-20,” he pointed out.
The optimism of Steel Ministry could be understood as consumption of steel during the last three years has grown by 12.5% per annum against 6.9% envisaged in the National Steel Policy.
Enthused by the government’s investment policies, Korean steel giant Pohang Steel Company (Posco) arrived in India in 2005 and pledged to invest Rs 52,000 crore to build a 12 million tonne integrated steel plant in Orissa.
Not to be left behind, global steel tycoon L N Mittal too have promised to invest about Rs 80,000 crore for building one plant each in Jharkhand and Orissa.
Sensing stiff competition, state-run steel giant SAIL embarked on modernizing all its plants at an estimated cost of Rs 49,000 crore to retain its position as the key domestic player. Besides, the Rashtriya Ispat Nigam Limited (RINL) too is executing its modernisation worth about Rs 9,000 crore.