Increasing investments from international steel giants have been propelling the growth in crude steel production capacity of India that stands at 72.76 Million Metric Tons at present.
As per the statement of Shri A.Sai Prathap, the current crude steel production capacity of India is 72.76 Million Metric Tons, as per the news published by
Alibaba.com on March 15, 2010.
In FY 2008-09, India’s crude steel production capacity was 64.4 Million Metric Tons. It is learnt that in 2008, nearly 7 Million Tonnes of new capacity was commissioned.
The driving force behind this increase in steel production capacity has been the increasing investment in the industry. Suddenly, international giants have started showing high interest in investing in the country’s large green field steel capacities.
Moreover, 67 Million Metric Tons of additional capacity is likely to come up by the end of FY 2011-12, revealed a leading market research firm
RNCOS in its research offering titled “
Indian Steel Industry Outlook to 2012”. The government’s target in coming years will be highly supported by the new investment plans.
The total of new investment proposals in the sector was valued at Rs 87,000 Crore for 21.5 Million Tonnes in the fourth quarter of 2009, when announcement for a new 6 Million Tonne steel plant in Karnataka came from the Mittals. This became the highest quarterly new steel investment in the country since 2006. With this added capacity, the production level is expected to increase considerably. So, India is likely to see increased production of crude steel in near future.
Although the country’s steel industry is exhibiting positive growth, it is facing some major challenges also. International steel giants ArcelorMittal and Posco are coming across regulatory barriers in land acquisition, which is severely hurting their steel projects in India. This, in turn, may hamper the anticipated growth of crude steel production capacity in the country.
According to a Research Analyst at
RNCOS, “If India ensures the harmonious acquisition of huge blocks of land by steel makers aiming to establish steel plants having capacity of 10-12 Million Tonnes, then next boom in steel capacity creation could be seen here. Moreover, to check the issues like forest clearances and environment sanctions, more professionalism and transparency needs to be brought in.”
Related Market Research Reports:
US Steel Industry Outlook
UAE Steel Industry Analysis
China Steel Industry Forecast till 2012 
