Business Daily from THE HINDU group of publications Wednesday, Jun 06, 2007 ePaper |
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Industry & Economy
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Steel Web Extras - Outlook `Specific consumption of steel in India must go up' Ambar Singh Roy
MR B. MUTHURAMAN
Kolkata June 5 Mr B. Muthuraman, Managing Director of Tata Steel and Past President of the Institute for Steel Development & Growth (INSDAG), has stressed on the imperatives of increasing the specific consumption of steel in India. According to him, the specific consumption of steel in India was among the lowest in the world, and an increase in the intensity of steel usage in construction would go a long way in giving the necessary fillip to steel demand in the country. Speaking to Business Line on the various initiatives being taken by INSDAG to promote increased usage of steel in the domestic market, Mr Muthuraman said the demand for steel in India could well go up to 80 million tonnes per annum "only by using more steel in existing applications."
Diverse uses
Citing instances of steel usage in buildings, bridges and stadiums the world over, he said architects, engineers and allied stakeholder communities in India needed to be enlightened on the diverse applications of steel and its advantages vis-à-vis other building materials in construction. These include steel's ability to withstand greater tensile loads and its lower lifecycle cost. Mr Muthuraman felt that, with more roads and ports being built, infrastructure being created and the automotive and FMCG sectors growing in India, steel usage would go up consequently. However, what was required is "intensity-oriented growth in addition to volume growth."
Intrinsic capabilities
"Inter-material competition will always be there. Eventually, the more efficient material will win. Steel has more ground to cover than to lose, because of its intrinsic capabilities. This is what needs to be brought to the fore by INSDAG. And I see it happening in India today," he said.
According to him, the per capita consumption of steel in India now stood at 38 kg compared with 220 kg in China and 300-400 kg in developed nations. "In developed countries, such as the UK and the US, per capita consumption of steel is higher than food. For man to live well, he has to consume more steel than food. It has happened in the developed world. In India too, it has to happen," Mr Muthuraman said.
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