Demand creation for 300 MT steel a big challenge

The draft steel policy aims at increasing supply of domestic coking coal to cut dependence on imports by half, while raising steel production to 300 MT by 2030-31. However, concerns have been voiced over low demand. “While the ministry targets to escalate production to 300 million tonnes, the demand creation for this volume and marketing it is the biggest challenge,” Minister of State for steel Vishnu Deo Sai was quoted as saying in a statement. The Indian steel industry, which contributes 2 per cent to the GDP, has huge a potential but there is a need for diversification and innovation to generate demand in the sector, Steel Minister Chaudhary Birender Singh said. “The Indian steel industry has to become highly competitive and it has to benchmark the parameters for becoming a world-class steel producer,” he said. Singh was speaking at the second regional conference on Make in India-Make in Steel and Doubling per capita Steel Consumption in Ludhiana, Punjab. The northern region accounts for 40 per cent steel consumption, he said, adding that the industry needs to compete and fight with other industries supplying substitution materials for steel. Singh said that Food Corporation of India (FCI) has plans to construct 100 lakh tonne steel silos by 2020 and northern states can contribute largely to it. He praised the secondary steel industry in northern states which use scrap intensive steel making thus reducing coking coal dependence and is also cost effective. “Steel industry’s landscape has undergone wide changes and more plants using melt and manufacture technologies should come up,” he said. Steel Secretary Aruna Sharma said the government is aiming to substantially increase the steel consumption. Central budget has given boost to steel consumption in various infrastructure sectors specially railways, defence and highways.
SAIL Chairman P K Singh said, “steel consumption in India will increase as a result of Make in India-Make in Steel initiative. Both urban and rural consumption is bound to increase due to various government initiatives.”
Source – PTI