Indian steel industry well on the way to achieve targeted production capacity of 300 MTPA by 2030-31
New Delhi, April 19. Capital expenditure (CAPEX) spending by central public sector enterprises (CPSEs) in the steel sector in FY 2021-22 was Rs. 10,038 crores, whi amounted to an increase of 38% over the CAPEX of Rs. 7266.70 crores recorded in FY 2020-21.
This was disclosed at a meeting chaired by Union Steel Minister, Mr. Ram Chandra Prasad Singh here today to review CAPEX incurred by Steel CPSE during the FY 2021-22, and to assess the plans of the CPSEs for achieving the CAPEX targets for the current year, ie 2022-23.
The Steel Minister emphasized the importance of timely capital expenditure for enhancing steel production capacity, modernizing old plant equipment, and taking up environmentally efficient technologies for the future. Such expenditure also provides a fillip to the Indian economy, he observed.
The CMDs of Steel CPSEs viz. SAIL, NMDC, RINL, KIOCL MOIL and MECON and senior officers of the Ministry of Steel attended the meeting.
The CAPEX target for FY 2022-23 in respect of Steel CPSEs is Rs. 1,3156.46 crores. The Union Minister of Steel advised the CPSEs to adhere to their monthly CAPEX Plans and closely monitor projects for ensuring time bound implementation and achievement of annual target successfully on time. The CMDs of Steel CPSEs assured that CAPEX targets for FY 2022-23 would be achieved.
During the review, deliberations were also held on the CPSEs’ plans under the National Steel Policy (NSP) 2017, as this envisions creating a globally competitive steel industry in India. The NSP 2017 envisages 300 million tonnes (MT) steel-making capacity and a per capita consumption of 158 kgs.
Capacity expansion on target
Notwithstanding, the pandemic the Indian steel sector has added capacity of 16.29 MTPA in the last five years to reach the capacity of 154.27 MTPA. Based on the present assessment Government is confident to reach the capacity of 300 MTPA by 2030-31. Most of the capacity expansion comes through brown field and some greenfield expansion which may come from 2025-30.
The Minister gave directions to Steel CPSEs to plan their capital projects prudently in line with the NSP – 2017. In order to ensure their capacity goes up by about 80% from present level to reach 45 MTPA by 2030-31 from the present level of around 25 MTPA. The Minister further stressed that CPSEs should take adequate measure to incorporate the learning’s from the past and current expansion projects in their future plans to ensure adherence to the envisaged capacity expansion.
The Union Minister for Steel Shri Ram Chandra Prasad Singh also directed the CMDs of the Steel CPSEs to develop their exploration expertise, work for capacity enhancement while keeping climate concerns in mind and work towards production of Green Steel, plan.