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Indian Government’s infrastructure plans set to provide boost for the steel industry

The Indian Government’s plan to overhaul the country’s infrastructure network will boost demand for steel in the next few years, according to the Chairman of SAIL.

The Indian Government’s plan to overhaul the country’s infrastructure network will boost demand for steel in the next few years, according to the Chairman of SAIL.

CS Verma, who is also the Chairman-cum-Managaing Director of NMDC, told delegates at Coaltrans India 2014 that the future of the Indian steel industry was “very bright”. One of the reasons behind this optimism is the Indian Government’s plans to increase infrastructure spending from the 5 per cent of GDP to 10 per cent by 2017. 

It is estimated that the infrastructure, construction and the automotive sectors will primarily drive the increased steel consumption in the country in the future.

India’s steel industry has already grown at an enviable pace from producing less than 22 million tonnes of crude steel at the turn of the century to around 81 million tonnes in 2012-13. Over the same period of time, per capita consumption has increased from 29kg in to 59kg.
However, a large percentage of India’s population live in rural areas where consumption per capita is approximately one-fifth of the national average.

Going forward, Mr Verma said that one of the biggest challenges will be the availability of land for installing fresh steel making capacities, adding that it is likely that the integrated steel plants of the future would be much more compact that the present ones and the specific land requirements would be much more compact than the current standards.

 “The Indian steel industry has come a long way since independence and is now a force to reckon with. However, we cannot rest on our laurels and be satisfied by the journey covered by Indian steel industry until now,” said Mr Verma, who was speaking at the event in Goa.
“There are challenging times ahead and we need to traverse this journey taking all the stakeholders along with us.”
This content is provided by Coaltrans Conferences for informational purposes only, and it reflects the market and industry conditions and presenter’s opinions and affiliations available at the time of the presentation.

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