Updated 17:37 IST, July 27th 2024
India's steel production expected to surpass 300MT by 2030: Official
In the fiscal year 2023-24, finished steel output reached 138.5 million tonnes, marking a 12.4% year-on-year increase.
India steel production 2030: A senior central government official expressed optimism about steel demand, projecting domestic production to exceed 300 million tonnes by 2030 despite industry headwinds.
Steel Secretary Nagaendra Nath Sinha stated that the Ministry of Steel does not anticipate any obstacles in capacity addition due to decarbonisation efforts. The ministry will soon release a draft roadmap seeking public input to reduce the carbon footprint in the steel sector, which currently accounts for 12 per cent of total emissions.
"The current steel demand remains strong, bolstered by the government's infrastructure push and an expected growth of about 10 per cent. The GDP is also growing robustly, and with continued emphasis on infrastructure from both government and private sectors, steel demand will continue to stay strong," Sinha said during an address to the Bharat Chamber of Commerce (BCC).
In the fiscal year 2023-24, finished steel output reached 138.5 million tonnes, marking a 12.4 per cent year-on-year increase. Achieving 300 million tonnes of installed capacity by 2030 will require a compound annual growth rate (CAGR) of 12 per cent.
From January to April 2024, steel production was 49.5 million tonnes, an 8.5 per cent increase, according to BCC president N G Khaitan.
Sinha also highlighted issues with inaccurate reporting of production and sales data by some steel makers, which the ministry believes creates gaps. He urged companies to report accurately to aid in policy formulation.
Steel makers face several challenges, including iron ore shortages, cheap steel imports, and policy shortcomings. Eastern India steel makers raised significant concerns about a 53 million tonne iron ore shortage in the sector and suggested measures to address it.
Regarding steel import concerns, Sinha noted that imports constitute only 5 per cent of consumption but acknowledged complaints about hot-rolled coil imports from Vietnam. The Directorate General of Trade Remedies, under the Ministry of Commerce and Industry, is addressing these concerns.
On the decarbonisation roadmap, Sinha mentioned that the government has established 14 task forces. After inter-ministerial discussions, the report will be released for public feedback soon. The roadmap includes increased hydrogen use in the steel industry and carbon capture initiatives.
The government's short-term target aims for a 20 per cent reduction in carbon intensity, with the current average being 2.5 tonnes per tonne of steel production. A consortium involving labs, IITs, primary and secondary steel makers, and equipment manufacturers is planned to develop indigenous green technology.
Sinha also said that the steel ministry has requested the Finance Ministry to support Rashtriya Ispat Nigam Ltd as a "going concern" during crises to maintain its valuation.
(With PTI inputs.)
Published 17:37 IST, July 27th 2024