Steel Industry of India: Employing 6 lakh people and contributing nearly 2% of the nation’s GDP #Hindustan360

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India’s steel sector plans to further increase production to 300 million tonnes per annum by 2025. India is the largest producer of Direct Reduced Iron (DRI). View more at #Hindustan360.

India third largest producer of crude steel in the world. India is also the third largest consumer of finished steel globally behind China and the US. The steel sector contributes nearly 2% to country’s GDP and employs over 6 lakh people. With a plan to increase steel production in the country to 300 Million Tonnes Per Annum (MTPA) by 2025, the Government has been focusing on infrastructure enablement in the sector.

Production and Consumption of Steel During April 2014 – March 2016, Domestic crude steel production grew by 11.6% as compared to April 2012 to March 2014.
Policy Initiatives & Investments FDI Policy: 100% Foreign Direct Investment is permitted through the automatic route.

Fiscal Incentives

Budget 2017-18 provides for reduction in basic Custom Duty for the following:
• Hot rolled coils for use in manufacture of welded tubes and pipes from 12.5% to 10%.
• Magnesium Oxide (MgO) coated cold rolled steel coils from 10% to 5 %.

During previous budgets the following incentives were provided:
• Safe guard duty of 20% imposed on hot-rolled flat products of non-alloy and other alloy steel, in coils of width of 600 mm or more. (March, 2016)
• The peak rate of basic customs duty on both flat and non-flat steel has been raised to 15% from 10%. (Budget 2015-16)
• To support domestic industry, import duty hiked on flat steel from 10% to 12.5%, long steel from 7.5% to 10% and semi-finished steel from 7.5% to 10%. (Aug 2015)
• For reducing the stress in the steel sector, RBI has extended Flexible Structuring of Long Term Project Loans to Infrastructure and Core Industries. (July 15, 2014)

Major Investments & FDI Inflows

Total FDI equity inflow in the Metallurgical Industries sector during April 2014-March 2016 was USD 815.64 million. FDI equity inflow increased by 27% to USD 456.3 million in FY 2015-16 compared to USD 359.34 million in FY 2014-15. From April-September 2016, FDI equity

Capacity Expansion

• Steel Authority of India Ltd. has undertaken modernisation & expansion of its integrated steel plants at Bhilai, Bokaro, Rourkela, Durgapur & Burnpur and special steel plant at Salem. In the current phase, the crude steel capacity is being enhanced at a cost of INR 61,870 crore to 21.4 MTPA from 12.8 MTPA.
• The modernization and expansion of IISCO Steel Plant (ISP), Burnpur of SAIL, was completed on May 10, 2015 at a cost of INR16, 000 crore. This has resulted in three fold increase in the hot metal production capacity from 0.85 MTPA to 2.9 MTPA.
• India’s largest blast furnace Kalyani was commissioned in November 2014 in SAIL’s Burnpur Steel Plant.
• The Rourkela steel plant of SAIL after modernization and capacity enhancement to 4.5 MTPA from 2 MTPA with an investment of INR 12,000 crore was dedicated to the nation on April 1, 2015.
• Expansion of Salem Steel Plant, Durgapur Steel Plant and Bokaro Steel Plant has also been completed. At Bhilai Steel Plant, facilities like Ore Handling Plant Par-A, second Sinter Machine in Sinter Plant-3 and Coke Oven Battery -11 are in operation and other facilities are at advanced stages of execution.

Read complete Steel Achievement Report 2016: issued by Indian Govt

View more at #Hindustan360.