Business Daily from THE HINDU group of publications
Sunday, Aug 19, 2007
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Business Daily from THE HINDU group of publications Sunday, Aug 19, 2007 ePaper |
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Steel Corporate - New Projects
The steel companies raised issues such as procurement of land, allotment of mines and also infrastructural difficulties that they are facing.
Phalguna Jandhyala New Delhi, Aug. 18 The Steel Ministry has envisaged an investment of close to Rs 2.8-lakh crore in the sector by the end of 2011-12 financial year based on expansion plans of various companies. The Ministry had summoned officials from the industry to review their capacity expansion plans and also take their view on the difficulties being faced by them. Only those producers, who have proposed to expand their current production to 3 million tonnes were present at the meeting here on Friday, which was chaired by the Steel Secretary, Mr R.S. Pandey. “Based on the current expansion programmes that the companies have presented, the Ministry estimates the capacity of all the companies put together to touch close to 120 million tonnes (mt) and even if they operate at 90 per cent of the installed capacity, the production level will be at 110 mt. “Apart from the companies that attended the meeting, the estimates also took into account the expansion plans being undertaken by public sector companies as well as what the secondary producers have undertaken,” Mr Pandey told Business Line after the meeting. Company-wise data
The industry currently produces close to 50 mt per annum. While Tata Steel will be adding 25 mt, JSW will be expanding by 15 mt and Essar Steel around 10 mt. PSU companies Steel Authority of India Ltd and Rashtriya Ispat Nigam Ltd will be adding 13 mt and 3 mt, respectively. On the other hand, Mittal Steel is looking at a 6-mt plant and Posco a 4-mt plant. All these projects are expected to be completed by 2012. The Ministry also expects the iron ore required to go up from the current 80 mt per annum to around 175 mt during the period. Output forecasts
The Government in the National Steel Policy had envisaged a total production of 110 mt by 2020. The Ministry had originally billed steel production to 65 mt by 2012 which had been revised to 80 mt. Issues raised
The companies, which attended the meeting, also raised issues such as procurement of land, allotment of mines – coal and iron ore and also infrastructural difficulties that they are facing. “Couple of them were ready to collaborate with the Railways or the National Highways Authority of India or various ports to develop the existing infrastructure which is also a very good move and will help solve a lot of infrastructural problems. “A couple of them also suggested the need of a regulator to look into the issue of iron ore prices,” Mr Pandey said. The Ministry is planning to take up with the concerned Ministries, Planning Commission and various state governments on the issues that were raised at the meeting when the inter-ministerial group meets next month.
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