BackSteel outplays other sectors: ₹3 lakh cr investment in 5 years
Steel outplays other sectors: ₹3 lakh cr investment in 5 years
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PTI
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 ₹ 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 ₹ 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 ₹ 4,000 crore investment per million tonne of additional capacity, an investment of ₹ 2,76,880 crore is expected by 2011-12 and ₹ 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 ₹ 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 ₹ 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 ₹ 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 ₹ 9,000 crore.
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