New steel policy to target 10% growth

The proposed new steel policy envisages a 10 per cent growth in output to meet the country's projected demand of 200 million tonnes by 2020.

The new policy is likely to be finalised in about a couple of months, the Steel Secretary, Mr D.R.S. Chaudhary, told Steel Summit 2012, organised by the Confederation of Indian Industry. It would replace the National Steel Policy 2005.

“The new policy will focus on removing infrastructure bottlenecks, improving technology and will focus on achieving a 10 per cent growth. That's the only way to grow. The more we expedite the new policy, the more beneficial it will be,” Mr Chaudhary said.

Currently, the Indian steel sector is growing at a compounded growth of five per cent. Steel production is around 72 million tonnes, broadly in line with the domestic demand. However, the demand is set to accelerate and touch 200 million tonnes by 2020.

The Indian steel industry is at the cusp of a sustained high-growth phase. While low per capita consumption provides a huge market potential, the industry is faced with challenges such as resource scarcity, delay in clearances and land acquisition among others.

“If the GDP has to grow at 8-9 per cent, steel production should grow at 10 per cent,” said Mr Naveen Jindal, Chairman, Jindal Steel and Power Ltd. The Government should improve the investment climate and encourage those investing in the steel sector to reach the targeted output of 200 million tonnes by 2020, Mr Jindal said.

The Steel Minister, Mr Beni Prasad Verma, said a roadmap for research and development (R&D) in steel sector is being created to encourage investments. An inter-ministerial group has been set up to deal with the land acquisition issues of steel makers.

vishwa@thehindu.co.in

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