Steel demand in India is expected to remain high, derived by strong fundamentals and the sector is expected to see an investment to the tune of about Rs.2 trillion in coming years, domestic firm Tata Steel Ltd has said.
“Small per-capita consumption will be a major growth driver and India will need to add substantial steel capacity in coming years... More than Rs.1,500-2,000 billion is expected to be invested in the steel sector over the next six-seven years,” Tata Steel has said in a presentation to the ministry of mines. Small per capita consumption will be a major growth driver, it said.
Tata Steel, which is among the top 10 global steel companies, also said the projected capacity addition “is expected to generate 3-4 millions jobs by the year 2017.” India’s per capita steel consumption is around 60kg, as against the world average of over 210kg, and 460 kg in China. The country’s steel consumption grew 3.3%, the lowest in three years, to 73.3 million tonnes (mt) in 2012-13 on subdued demand due to slackening economy and high interest rates. It grew by 5.5% in 2011-12 and 9.9% in 2010-11.
In the presentation, ‘Potential Areas for Technical Co-Operation in Underground Coal Mining,’ Tata Steel also said that the steel industry is an important contributor to Indian economy.
“The steel industry is the second highest contributor to excise revenues (8%) after oil and gas,” it said. Tata Steel Group, with an annual crude steel capacity of over 29 mt per annum, is the world’s second-most geographically-diversified steel producer with operations in 26 countries.
It had a turnover of $24.82 billion in FY13. Its Jamshedpur facility comprises of a 9.7 mt per annum (mtpa) crude steel production facility. Besides, three new greenfield steel projects in Odisha, Jharkhand and Chhattisgarh are underway to augment production capacity further by 23 mtpa.
Source:- livemint.com
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