Govt to focus on increasing production by enhancing raw material security for steel sector in 2022

Industry Outlook Team | Tuesday, 28 December 2021

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Increasing per capita steel consumption and production of special steel as well as enhancing raw material security will remain the key focus areas of the government in 2022.The Minister of State (MoS) Faggan Singh Kulaste said the focus will also be on finding new markets because of increased steel production.

As per the National Steel Policy 2017, the government has set a target to boost up the country's crude steel production output to 300 million tonnes (MT) by 2030.

In an interview with PTI, Kulaste said the per capita steel consumption in the country is at around 72.3 kg at present, while the capacity is at 143.9 MTPA (million tonnes per annum), and the focus will also be on increasing the output of special steel. He also said that the Indian steel sector is full of opportunities,

and the country must aim to grab the
numerous position in quality steel production.

In 2021, ''We signed an MoU with Russia for (to diversify) the supply of coking coal. Players are already using it. The talks with Mongolia are progressing (for the supply of coking coal). PSUs and private players have been directed to increase their Capex and outputs,'' the minister said.

Industry body Indian Steel Association (ISA) said the finished steel demand in India is expected to be up by around 16.7 per cent to reach around 104 million tonnes by the end of 2021, and by the end of next year, it will be at 111 million tonnes.

ISA Secretary-General Alok Sahay said crude steel production during January-November 2021 period stood at 104.91 million tonnes, and finished steel production and consumption was at 97.882 million tonnes and 93.057 million tonnes, respectively.

V R Sharma, Managing Director of Jindal Steel and Power Ltd (JSPL), said that in 2022, the steel industry would enhance its role in national development, employment generation and continue to participate meaningfully in economic developments.

''We at JSPL is advancing in our quest of making available world-class steel products at an affordable price for building nation of our dream. We are going to enhance our production during 2022, which will further increase the availability of steel in the domestic market,'' he said.