India could again turn a net exporter of steel over next couple of years. This is even as steel makers such as SAIL and Tata Steel are in the process of expanding their capacities through both greenfield and brownfield projects.

Steel Secretary, Mr P.K.Misra said current trend indicates that imports and exports will even out and eventually the country would become a net exporter over next few years. He was speaking at the Steel Tube Summit 2011, organised by CII.

Steel imports stood at 4 million tonnes last fiscal, while exports stood at 3 million tonnes, he said. Till 2006-07, India was a net exporter of steel. However, with the domestic capacity not keeping pace with the demand, the country turned an importer.

Steel capacity stood at 83 million tonnes as of July and is set to increase to 93 million tonnes by end of current financial year, Mr Misra said. By 2020, steel capacity is set to more than double to about 200 million tonnes.

Though demand has been subdued in the first few months, Mr Misra said it would pick up after monsoons and consumption is set to grow by 10 per cent in the current fiscal.

Stating that the steel tubes and pipe sector holds immense potential, Mr Misra said growth was driven by a huge surge in demand from sectors such as oil and gas, water and even agriculture.

Suggested Box: NMDC to ramp up output from Bellary

State-run NMDC will ramp up iron ore production in Bellary in about a month’s time, said Steel Secretary, Mr P.K.Misra on Friday.

NMDC is the only company to be allowed by the Supreme Court to operate two mines in Bellary after a mining ban was imposed in the district on environmental grounds. The apex court has directed NMDC to produce a million tonne of iron ore to meet the requirement of local steel makers.

The company is gearing up by moving machinery and manpower to increase its output from Bellary region. “In about a month or so they will be able to ramp up,” Mr Misra said. “We are also supplying ore from Chhattisgarh. Some companies are getting their supplies from Goa. Though there will be some disruption, I think there will be stability in supplies in about a month,” Mr Misra said.

SAIL FPO

Replying to a query on the propose follow on offer by SAIL, Mr Misra said the launch of issue has to be at an appropriate time when the stock markets are in good condition. “We still intend to go ahead with the FPO this fiscal,” Mr Misra said.

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