DECEMBER 20238INDIA'S STEEL PRODUCTION TO REACH 190MT BY 2030As per the SteelMint India report, India's steel demand is expected to grow at a CAGR of 7 percent to reach 190 Million Tonne (MT) by 2030. According to the market research firm, the construction and infrastructure sectors will contribute 60-65 percent of the demand. Based on a 7 percent compound annual growth rate (CAGR), India's steel demand is expected to reach 190 MT in 2030."In the best-case scenario, it can also reach 230 MT by 2030," according to the report titled 'India's Steel and Coking Coal Demand 2030."Automobile and engineering sectors will also drive demand, and factors such as population growth, urbanisation, and various government initiatives will be key drivers. According to the report, demand will reach 120 MT by the end of 2023, while production will be 136 MT. India's crude steel production is expected to reach 210 MT by 2030, a 45 percent increase over 2023 levels.According to the report, many countries, including China, will see a drop in steel production compared to current levels. According to SteelMint, India's steel production growth via the Blast Oxygen Furnace (BOF) route, aiming for 140 MT of hot metal output in 2030, will necessitate 116 MT of metallurgical coal.In times to come, India will emerge as the largest importer of sea-borne met coal, which has a market share of 30 per cent, it said, adding that the country will require around 350 MT of iron ore by 2030. GOVERNMENT TO INCENTIVISE DOMESTIC MINING EQUIPMENT MANUFACTURINGAn inter-disciplinary committee comprised of officials from Coal India Ltd, the railway ministry, the heavy industries ministry, NLC India Ltd, and NTPC Ltd, among others, has recommended encouraging domestic mining equipment manufacturing through incentive schemes, standardisation, and specific tendering clauses. This gains importance because coal is expected to remain the dominant energy source beyond 2030. The committee anticipates a significant demand for equipment over the next ten years.According to a government release, the committee also included representatives from Singareni Collieries Company Ltd, West Bengal Power Development Corporation Ltd, Bharat Earth Movers Ltd, Caterpillar India Pvt Ltd, Tata Hitachi, Gainwell India, and industry associations.The committee has suggested the standardisation of equipment in line with Coal India's existing equipment standardisation effort, the government said.It has also stated that tender clauses should encourage the use of domestic equipment. A proposal was made to incentivize manufacturers to design, develop, and manufacture equipment in India for five years as part of the Make in India initiative.Coal India currently imports high-capacity equipment worth 3,500 crore, including electric rope shovels, hydraulic shovels, dumpers, crawler dozers, and others, with an additional 1,000 crore in customs duty. TOP STORIES
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