In a way, 2005 was the year of memoranda of understanding for steel. Mega greenfield projects were set to add more than 100 million tonnes of capacity. So, when the government came out with the National Steel Policy the same year that set a goal of 100 million tonnes in production by 2019-20, it was seen as an easy target.
The installed capacity in India today, the third largest steel producer globally, is 122 million tonnes. However, even though India has surpassed its target capacity, the utilisation in the sector is 75-80 per cent. In that backdrop, how realistic is the target of a 300 million tonne capacity by 2030, as set by the National Steel Policy 2017?
The real challenge is consumption, says Steel Authority of India Chairman P K Singh. “The government intends to take capacity to 300 million tonnes by 2030 and we require a good policy for that. We will not achieve that kind of capacity unless we have strong foundations for it. Today, production is around 90 million tonnes; for three times that production, we need sound policies,” Singh says.
The policy strikes the right chord by highlighting the potential that India offers in terms of growth in per capita consumption of steel, which at 61 kg is way below the world average of 208 kg.
via Steel gets a boost as govt steps in to support demand | Business Standard News
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