Iron and steel

1. By
Madhu Sharma
Roll. No.-20603
BA Final Year

2.  Iron and steel industry in India is over 125
years old.
 India is the tenth largest producer of crude
steel in the world.
 The first steel plant set up by Iron Work
Company at Kulti in 1870
 India has some of the world’s richest deposits
of iron ore.
 India is the fourth largest exporter of iron
ore in the world. After Brazil, Australia and
Russia.

3. others
Packaging
Consumer durable
Capitalgoods
Autos
Construction

4.  Availability of iron and steel
 Low labour wage rates
 Abundance of quality manpower
 Mature production base

5.  Unscientific mining
 Low productivity
 Coking coal import dependence
 Low R&D investments
 High cost of debt
 Inadequate infrastructure

6.  Unexplored rural market
 Growing domestic demand
 Exports
 Consolidation

7.  China becoming net exporter
 Protecnism in the west
 Dumping by competitors

9.  TISCO-Jamshedpur
 IISCO-Kulti, Hirapur, Bumpur
 Bhilal
 Rourkela
 Salem

10.  National steel policy was initiated by
ministry of steel in 2005.
 It aims at increasing total steel production of
country.
 Its long term goal is that India should have a
modern and efficient steel industry.

11.  The 1991 reforms allowed for no licenses to be
required for capacity. Except for some locations.
 Another reforms for India’s came in 1992, when
every type of control over the pricing and
distribution system was removed, making the
modern Indian steel industry extremely efficient,
as well as competitive. A number of other
government measures have stimulated the
growth of the steel industry, coming in the form
of an unrestricted external trade, low import
trade, low import duties, and an easy tax
structure.
 INSDAG was set up.

12.  The domestic consumption of steel has grown
by 12.5% in the past three year.
 The domestic steel consumption in the 2006-
07 was 41.14 million tones.
 The average growth rate of the India iron
and steel industry is 11.36%
 The construction projects all over India are
major consumer of steel
 The per capita consumption of steel in India
is 50kgs.

13.  The Arcelor Mittal, which is the largest steelmaker
in the world, has plans of establishing two
GREENFIELD STEEL PROJECTS with capacity of 12
million tonnes annually, in India
 Acerinox SA, one of the important stainless steel
manufactures in collaboration with Nisshin Steel,
Japan is setting up a steel plant in India
 SAIL, India's biggest producer of steel has plans of
increasing the production to 24.98 million tonnes
annually
 the acquisition of the Corus, the ANGLO- DUTCH
steel manufacturer by TATA STEEL
 The Algoma steel, Canada was acquired by Essar
global for US $ 1.63 billion

14.  India has several advantageous features which
gives the dominant position its steel industry
on the world map. Some of these are :-
 (i) Establishment of new state- of - the - art
steel plants in the country with lesser
dependence on external aid.
 (ii) Continuous modernization as well
implementation of debottlenecking and
technology upgradation schemes in the older
plants
 (iii) improvement in energy efficiency of coke
rate and power consumption.

15.  (iv) Utilization of better quality raw materials
such as imported cocking coal, accessed from
global sources.
 (v) optimum processing of raw materials like
washing of coal, beneficiation and sintering of
iron ore; etc.

16.  Capital
 Lack of technology
 Low productivity
 Inefficiency of public sector units
 Low potential utilization
 Heavy demand
 Shortage of metallurgical coal
 Inferior quality of products

17.  The Iron and steel industry in India has a great
potential for growth. It has made tremendous
progress since independence and will continue
to do so. With efforts in the right direction
India is capable of becoming a superpower.