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    Indian Steel Ministry releases National Steel Policy 2017
      Release time: 2017/01/16 09:24:00  Author: 

    The Indian Ministry of Steel has released draft National Steel Policy (NSP). The draft steel policy is open to suggestions by stakeholders until January 23rd, 2017.

    According to NSP, India was the only large economy in the world where steel demand continued to demonstrate positive growth at 5.3 % in 2015. The fast growing infrastructure and manufacturing sectors suggest that the steel demand is likely to remain robust in the forthcoming years. The steel industry will likely play a crucial role in transforming the country to a developed nation.

    The Indian steel industry has significant potential for growth. The per capita steel consumption in the country stands at 61 kilograms, much lower when compared with the global average of 208 kilograms. The per capita steel demand in India is likely to reach 160 kilograms by 2030-’31. Currently, construction and infrastructure sectors account for 40% of total steel consumption by the country. This is expected to increase to 59% by 2030-’31.

    At the current rate of GDP growth, the steel demand will grow three-folds over the next fifteen years to touch 212-247 million tonnes by 2030-’31. Increased government spending in infrastructure development, expansion of railway networks, the revival in domestic shipbuilding sector, private participation in defense sector and anticipated growth in automobile and construction industry is expected to boost steel demand in the country.

    The report predicts annual crude steel capacity to touch 300 million tonnes (MT) in 2030-’31. The above target could be achieved only through extensive mobilization of natural resources, finances, manpower and infrastructure. It requires creation of additional capacity, which in turn require significant capital investment of around Rs 10 lakh crores by 2030-’31. This will generate additional 11 lakhs of job opportunities.

    The projected growth of the steel industry could be achieved only with availability of raw materials at highly competitive rates. The government has already come up with a new Act to ensure time bound mine development. The Act is expected to bring more clarity on mine allocation process and the procedures for renewal of existing mining leases. The Ministry, in conjunction with the Ministry of Mines will develop new formalities to ensure adequate availability of iron ore and other minerals.

    The draft policy proposes to promote scrap based steelmaking technologies. To this effect, efforts will be made to increase the availability of scrap. The ministry will co-ordinate with all stakeholders in developing a scrap segregation, collection, processing and recycling policy. Modern steel shredding plants will be promoted to ensure that good quality scrap materials are made available to steel scrap processing units. Coordinated efforts with the Ministry of Power will ensure availability of adequate power supply to the sector. The power requirement by the industry is expected to increase to nearly 28,000 MW by 2030-’31.

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