2. DISCLAIMER
Writing of this analytical report “Reserve & Resources of Iron ore for Indian Steel Industry” is based
upon my personal experience with passion and excitement that came from long-term association with steel
industry.
I have not generated any data or facts; I have only interpreted, analyzed and re constructed graphical
representations for easy understanding.
All datas and facts are collected from different sources as mentioned same in text. I do not claim any cross
verification done from my side or I shall not responsible if any of furnished data found wrong or any mistake
made by the author / agency /department of parent source.
Subrat Kumar Kar

3. C O N T E N T
Subject Page Numbers
INTRODUCTION 1-1
RESOURCES OF IRON ORE IN INDIA 1-8
STATUS OF INDIAN STEEL INDUSTRY 9-9
GROWTH IN INDIAN STEEL SECTOR 10-10
PROJECTED DEMAND OF STEEL IN INDIA 11-14
STATUS OF SOURCE OF IRON ORE FOR STEEL
INDUSTRY IN INDIA
15-15
SCOPE OF DEVELOPMENT OF STEEL INDUSTRY IN
INDIA
16-16

4. Preface
The present analytical report “ RESERVE AND RESOURCES OF IRON ORE FOR
INDIAN STEEL INDUSTRY” is my initiation to produce some facts of reserve and
resources of iron ore in India which is a major raw material uses for steel
industry.
In this report I have attempted to analyze Indian steel industry focusing on each
and every aspect of factors influence the development of steel industry. Beginning
with an analysis of reserve and resources of iron ore, performance, consumption
and projected growth in steel sector, I have also outlined position of India in world
in steel making. An analysis of the economic development of the country is also
attempted with respect to the growth of GDP. Similarly an approach has been
adopted to understand the hurdles and future prospect of steel industry in India.
It is not intended as a definitive work on all or any particular aspect of steel industry
rather as an informative document to refer for more clarity with facts regarding
availability of iron ore in India for future use and scope of development of steel
industry.
Many sources of information have been consulted as referred in the text. Many
research papers have been studied and data’s collected form authentic sources.
I would like to thanks all my colleagues from different disciplinary associated with
me in different projects and my seniors for their support, encouragement , sharing
of knowledge and their trust on me.
Subrat Kumar Kar

5. INTRODUCTION: India maintains 3rd largest crude steel producer in the world, expected to be in 2nd
position in next few year. India is top in sponge iron (DRI) production in world and contributes major share in steel
production. The steel sector contributes 2% of the country’s GDP and provides employments over 6 lakh people.
Beside major contribution in GDP the per capita steel consumption is still at lower side only 60kg compared to the
worlds as 217kg and china as 510kg. The rate of par capita consumption is not much encouraging but increasing
year over year and opening a scope for further development of steel market. India is developing country with 1250
millions of population, to serve basic facilities to such huge population it has increased its crude steel producing
capacity to 109.85 million tons in 2015, but still lag behind to china that has capacity of 1 billion tons and already
reached production level at 800 million tons per annum. Despite huge deposit of raw material like Iron ore and non-
coking coal to meet future industrial requirement, such happenings like sudden amendments in MMDR Act,
unpragmatic policies, imposition of complex statutory obligations and various prohibitions /limitation in the
process of mining lease acquisition/auction are major hurdles in due course of development of steel industry. All these
happenings and speculation of lapsing of maximum iron ore lease holds by 2020 and 2030 for non captive and captive
respectively created an another environment of insecurity of availability of iron ore post 2020.
The Indian mining and steel sector is facing difficulties for the last 3-4 year and eventually confused over taking
decision for future investment for capacity expansion. In this analysis, efforts have been made to narrate facts and
scope of development of steel industry even with these hurdles.
 RESOURCES OF IRON ORE IN INDIA
Iron ore Reserve in Million Tons (Mt)
(111,121 & 122) as per UNFC
Remaining Resources in (Mt) as per
UNFC (211,221,331,332,333 & 334)
Total in
(Mt)
Hematite 8093 9789 17,882
Magnetite 22 10622 10644
Source: Mineral Year Book,2015 (IBM)
Figure - 1 . Showing Hematite and Magnetite ore deposits in India
I N D I A
Hematite Ore -
Magnetite Ore -
Note : Telangana State has not shown
1

6. Estimated reserve and remaining resources of Hematite and Magnetite iron ore classified based on mineable size, grade and utilization basis.
RESERVE & REMAINING RESOURCES OF HEMATITE ORE
Size /
Grade
Reserve in (Mt) Total
Reserve in
Mt
(A)
Remaining Resources in (Mt) Total
remaining
Resources in
Mt (B)
Total
(A + B) in
Mt
High
Grade
(+62% Fe)
Medium
Grade
(+60 – 62%)
Low Grade
(Fe)
(+55 -60%)
Un
classified
others Not
Known
High Grade
(+62% Fe)
Medium
Grade
(+60 – 62%)
Low Grade
(+55 -60% )
Unclassified Others Not
Known
Lumps 1023.938 4327.690 245.847 69.233 5666.708 474.803 2093.623 1380.139 323.420 4271.985 9938.693
Fine 228.492 711.153 428.296 1.055 1368.996 130.293 1395.805 764.624 155.297 2446.019 3815.015
Lumps &
Fine
344.241 305.700 235.520 148.443 1033.904 280.271 355.287 504.191 223.511 1363.260 2397.164
Blue dust - - - - 4.520 4.520 18.469 18.469 22.989
Others 16.924 16.924 38.769 38.769 55.693
Un
classified
2.093 2.093
Not
known
2.494 2.494 1647.957 1647.957 1652.544
Total 1596.671 5344.543 909.663 218.731 21.444 2.494 8093.546 885.367 3844.715 2648.954 704.321 57.238 1647.957 9788.552 17882.098
Source: Mineral Year Book 2010 & 2015, Indian Bureau of Mines
66%
20%
11%
3%
0%
0%
Grade wise percentage of reserve of
Hematite iron ore in India.
High Grade
Medium Grade
Low Grade
Others
Unclassified
Not Known
39%
27%
17%
9%
7%
1%
Grade wise percentage of remaining
resources of Hematite iron ore in
India.
High Grade
Medium Grade
Low Grade
Others
Unclassified
Not Known
2

7. RESERVE & REMAINING RESOURCES OF MAGNETIETE ORE
Reserve Remaining Resources
Reserve in (Mt) Total Reserve in (Mt)
(A)
Resources in (Mt) Total Re Resources in (Mt )
(B)
Metallurgical 5.564 5.564 2182.111 2182.111 2187.675
Coal Washery 0.856 0.856 7.719 7.719 8.575
Foundry 0.455 0.455 0.303 0.303 0.758
Others 2.213 2.213 0.293 0.293 2.506
Unclassified 12.041 12.041 8151.582 8151.582 8163.623
Unknown 0.626 0.626 280.297 280.297 280.923
Total 21.755 10622.305 10644.060
Source: Mineral Year Book 2015, Indian Bureau of Mines
26%
4%
2%
10%
55%
3%
Utilization grade wise percentage of
reserve of Magnetite Iron ore in India
Metallurgical
Coal Washery
Foundry
Others
Unclassified
Unknown
20%
0%
0%
0%
77%
3%
Utilization grade wise percentage of
remaining resource of Magnetite Iron ore
in India
Metallurgical
Coal Washery
Foundry
Others
Unclassified
Unknown
3

8. Reserve and remaining resources of Hematite ore (in mt)
States Reserves
in Mt
Remaining
Resources in Mt
Total in Mt
Andhra Pradesh 152.217 229.261 381.478
Chhattisgarh 900.110 2391.714 3291.824
Goa 469.844 457.328 927.172
Jharkhand 2304.142 2292.478 4596.62
Karnataka 876.866 1281.811 2158.677
Madhya Pradesh 56.814 174.632 231.446
Maharashtra 13.414 269.795 283.209
Odisha 3313.000 2617.232 5930.232
Rajasthan 7.139 23.420 30.559
Assam
Bihar
Meghalaya
Uttar
Pradesh
--- ---
--- ---
--- ---
--- ---
12.600
0.055
0.225
38.000
12.6
0.055
0.225
38.00
TOTAL 8093.546 9788.551 17882.097
Source: Mineral Year Book, 2015, IBM
STATE WISE RESERVE AND REMAINING RESOURCES OF HEMATITE ORE AS ON 1st
APRIL 2015
(IBM)
2%
25%
5%
23%
13%
2%
3%
27%
0%
State wise % of Estimated Reserve of Hematite ore
in India
Andhra Pradesh
Chhattisgarh
Goa
Jharkhand
Karnataka
Madhya Pradesh
Maharashtra
Odisha
Rajasthan
2%
24%
5%23%
13%
2%
3%
27%
0% 1%
State wise % of Estimated Remaining Resources of
Hematite Iron ore in India
Andhra Pradesh
Chhattisgarh
Goa
Jharkhand
Karnataka
Madhya Pradesh
Maharashtra
Odisha
Rajasthan
Others
4

9. 72%
4%
4%
0%
20%
Statewise % of Reserve of Magnetite Iron ore in India
Goa
Jharkhand
Maharastra
Odisha
Rajasthan
Reserve and Remaining resources of Magnetite Ore (in mt)
State Reserve in
mt
Remaining
Resources in
mt
Total in mt
Andhra Pradesh --- --- 1463.541 1463.541
Goa 15.675 206.998 222.673
Jharkhand 0.912 9.629 10.541
Karnataka --- --- 7801.744 7801.744
Kerala --- --- 83.435 83.435
Maharashtra 0.875 0.486 1.361
Odisha 0.054 0.145 0.199
Rajasthan 4.240 522.590 526.83
Assam
Bihar
Meghalaya
Nagaland
Tamil Nadu
15.380
2.659
3.380
5.280
507.037
15.38
2.659
3.38
5.28
507.037
TOTAL 21.756 10622.30 10644.06
14%
2%
0%
73%
1%
0%
0%
5%
5%
Statewise % of Remaining Resources of
Magnetite ore in India Andhra Pradesh
Goa
Jharkhand
Karnataka
Kerala
Maharashtra
Odisha
Rajasthan
Others
STATE WISE RESERVE AND REMAINING RESOURCES OF MAGNETITE ORE AS ON 1st
APRIL
2015 (IBM)
5

10. Name of the State
Depletion of Reserve of iron ore in last five years Quantity
of
Reserves
Available
as on
1.4.2015
Remaining
resources of
Iron Ore as
on 1.4.2015
Total Iron
ore available2010-11 2011-12 2012-13 2013-14 2014-15 Total
As on 1st
April 2015
Estimated
Reserves as
per UNFC as
on 1.4.2010
(Mineral Year
book Dec
2015)
Available
Reserve
after
1.4.2014 in
Mt
(7-6)
0 1 2 3 4 5 6 7 8
Andhra Pradesh 1.560 1.776 1.176 0.753 3.004 8.269 152.217 143.948
7299.878 9788.551 17088.429
Chhattisgarh 29.320 30.457 27.963 30.156 29.659 147.555 900.110 752.555
Goa 35.564 33.636 10.897 -- -- 80.097 469.844 389.747
Jharkhand 22.288 19.258 17.986 22.557 19.336 101.425 2304.142 2202.72
Karnataka 38.983 13.233 11.504 18.308 20.625 102.653 876.866 774.213
Madhya Pradesh 1.762 1.237 1.225 2.115 4.685 11.024 56.814 45.79
Maharashtra 1.525 1.539 1.193 1.621 0.003 5.881 13.414 7.533
Odisha 76.128 67.414 64.439 76.227 51.564 335.772 3313.000 2977.23
Rajasthan 0.027 0.032 0.235 0.696 0.002 0.992 7.139 6.147
TOTAL 207.157 168.582 136.618 152.433 128.878 793.668 8093.546 7299.878
Source: IBM, Ministry of Mines Govt. of India, Ministry of steel, JPC, different State Govt’s mining department.
2% 10%
5%
30%
11%
1%
0%
41%
0%
State wise Update reserve of Iron Ore
(Hematite ) in India as on 1st April 2015
Andhra Pradesh
Chhattisgarh
Goa
Jharkhand
Karnataka
Madhya Pradesh
Maharashtra
Odisha
Rajasthan
DEPLETION IN ESTIMATED RESERVE AND REMAINING RESOURCES OF IRON ORE
AS ON 1ST
APRIL, 2015
6

11. Source: Constructed based on data source from, IBM, Ministry of Mines, Govt. of India, JPC, Directors of mines of different State Govt.
Andhra
Pradesh
Chhattisgarh Goa Jharkhand Karnataka Madhya
Pradesh
Maharashtra Odisha Rajasthan
TREND OF PRODUCTION OF IRON ORE IN INDIA IN LAST FIVE YEARS
2010-11 2011-12 2012-13 2013-14 2014-15
7

12. Mining Sectors Year over year variation in production of iron ore in Mt
2009-10 2010-11 2011-12 2012-13 2013-14(p) 2014-15
Public Sector 58.621 60.001 56.610 52.661 59.540 129.0
Private Captive 43.797 44.761 42.967 44.961 50.099
Non Captive 116.135 103.236 69.005 38.996 42.794
INDIA in Total 218.553 207.998 168.582 136.618 152.433 129.00
YEARWISE EXPORT AND IMPORT OF IRON ORE IN INDIA
Export of Iron ore 101.531 46.890 47.153 18.122 16.302 5.00
Import of Iron ore 0.896 1.867 0.978 3.056 0.369 15.5
Source: IBM, Govt. of Orissa, Ministry of Mines Govt. of India, Ministry of steel, JPC& Exim.net
Due to ban on iron ore mining in most of iron ore producing states, import of iron ore reached all time high up to 15.5mt in year 2015 but export of iron ore slide down to 5mt due to
poor market demand and high export duty.
0
20
40
60
80
100
120
140
2009-10
2010-11
2011-12
2012-13
2013-14(p)
Year wise year variation in production in
Mt
Public
Sector
Private
Captive
Private
Non
Captive
SECTOR WISE PRODUCTION OF IRON ORE IN INDIA IN LAST FIVE YEARS
2009-10 2010-11 2011-12 2012-13 2013-14 2014-15
101.531
46.89 47.153
18.122 16.302 5
0.896
1.867
0.978
3.056 0.369
15.5
Export import
8

13.  STATUS OF INDIAN STEEL INDUSTRY
India produced 89.6 million tonnes of crude steel grew by 8.9 percent and produced 91.46 million
tonnes (MT) of finished steel in FY 15. Total finished steel production in the country increased at a
CAGR of 7.45 per cent over FY011–15. India’s crude steel capacity reached 109.85 Million Tonnes
(MT) in 2014-15. Consumption of total finished steel increased 3.9 per cent to 76.99 and per capita
steel consumption is reached 60Kg in 2015.
World’s Top 10 Steel – producing countries with rate of per capita
consumption of Steel
Rank Country Crude steel production
in 2015 in (Mt)
% in growth 2015/14 Rate of per capita
consumption of Steel in
year 2014 in Kg
1. China 803.8 - 2.3 510
2. Japan 105.2 - 5.0 531.7
3. India 89.6 2.6 59.4
4. United States 78.9 - 10.5 331.4
5. Russia 71.1 - 0.5 302.8
6. South Korea 69.7 - 2.6 1118.8
7. Germany 42.7 - 0.6 473.9
8. Brazil 33.2 - 1.9 121.7
9. Turkey 31.5 - 7.4 405.3
10. Ukraine 22.9 - 15.6 95
Source : World Steel Association,
India has left behind US to become the world’s 3rd largest crude steel producer with 5.5% shares in
world production. The Indian steel industry is very modern with state-of-the-art steel mills. It has
always strived for continuous modernization and up-gradation of older plants and higher energy
efficiency levels.
9

14.  GROWTH IN INDIAN STEEL SECTOR
Growth in steel consumption in India is much behind but increasing steadily. Even during recession in
global economy, steel production has grown at 2.6 percent and rate of consumption has grown at 5.75
percent during FY 08-15.It is expected that consumption would increase supported by rapid growth in
the industrial sector, rising infra expenditure projects in railways, roads & highways moreover rate of
urbanisation which is much behind compare to other countries.
By Mike Elliot, the steel intensity curve explains the long-term drivers for steel use (see Figure). The
first stage of the curve during an emerging economy’s rapid growth is the most steel intensive, driven
largely by high levels of government investment that boost construction and infrastructure demand.
Which further start decline when reaches threshold point of GDP as shown in fig in stage 2 & 3.
STEEL CONSUMPTION PATTERN IN INDIA (2013-14) : The sector
wise consumption pattern India (2013 -14) shows that the consumption in infrastructure is
21percent
21%
19%
28%
5%
6%
9%
12% Infrasturcture
Industrial coonstruction
0thers
Capital goods
Consumer durable
Pipes & tubes
Automobile
By Mike Elliott
Global Mining & Metals Leader, Ernst & Young
10

15. PROJECTED DEMAND OF STEEL IN INDIA
PROJECTED DEMAND AND FORECAST OF STEEL CONSUMPTION
OF FUTURE IS BASED ON
Macro – Economic Approach
 It uses the relationship between steel
consumption and macro economic
variables such as Gross Domestic Product
(GDP) to forecast steel demand (Rao
1984), where it account of steel consumed
per unit of GDP
 India was a net importer of steel till FY13,
but turned a net exporter of the same in
FY14. In 2015, India imported 9.32 MT of
steel while exports declined to 5.59 MT in
FY15 from 5.98 MT during 2013-14
 For FY15, per capita consumption of steel in
India was 60 kg against the world average of
217 kg.
End Use Approach
 The end use approach is a bottom up model
in which steel demand forecasts are
separately estimated for each steel
consuming sector and then aggregated (Rao
1984).
 In FY15, the consumption of finished steel
grew to 76.99 MT while the CAGR
increased to 5.74 per cent during
FY 08-15.
 Driven by rising infrastructure development
and growing demand for automotives, steel
consumption is expected to reach 104 MT
by 2017
Source: Rao, T.R (1984): “Scenarios for the Indian Iron and Steel Industry”, Long Range
Planning, 17(4): 91-101, IBEF.
Indian steel industry : Production for Sale in mt ( million tonnes)
Category 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
(April- Dec)
Pig Iron 5.68 5.371 6.870 7.950 9.694 62.39
Sponge Iron 25.08 19.63 14.33 18.20 20.38
Total Finished Steel
(alloy + non alloy)
68.62 75.70 81.68 87.67 91.46 55.82
Source: Joint Plant Committee, Ministry of Steel & TechSci Research.
PRESENT TREND OF PRODUCTION OF FINISHED STEEL
IINDIA
11

16. Projection Projected
growth in
GDP
PHASE WISE REQUIRMENT OF STEEL AND IRON ORE IN
INDIA ( million tonnes) mt
Total Reserve of Iron
ore (Hematite) as on
1st
April 2015 (million
tonnes)2016 -17 2019-20 2025-26 2035-36 2040-41
Projected
Production
of Crude
Steel
7.0 125.9 157 249 536 787 High grade ore
= 1596.671***
Medium Grade
= 5344.543***
7.5 125.9 159 261 592 893
8.0 125.9 162 273 654 1012
8.5 125.9 164 287 722 1147
Projected
Required
Quantum
of iron ore
7.0 206.2 257 401 849 1236
7.5 206.2 260 425 958 1441
8.0 206.2 265 444 1058 1632
8.5 206.2 268 467 1167 1848
Source: 1. USGS, 200, Mineral Commodity Summery. 2. Ministry of Steel : National Steel Policy. 3. P.C Gupta, 2010 :
Raw Material Security. 4. IBM: Mineral Based industries (Mineral Year Book 2013) *** minable reserve and resources may
further less in quantity.
PROJECTED GROWTH IN GDP AND REQUIREMNT OF IRON ORE
AND STEEL IN INDIA BY 2040-41.
FORECAST OF STEEL DEMAND BY 2016
12

17. Crude steel capacity addition plan 2015-20 (in mtpa)*
Company Existing
capacity
Brownfield
Expansion
Greenfield
Expansion
Total capacity
addition
Tata Steel Ltd 9.7 0.4 10.0 20.1
Essar Steel Limited 10 1.46 0 11.46
JSW Steel Limited 14.3 3.8 0 18.1
Jindal Steel & Power Limited 4.5 1.6 7.5 13.6
Bhushan Steel Limited 5.6 0 3.9 9.5
Bhusan Power & Steel Ltd 2.5 0 0 2.5
Monnet Ispat & Energy Ltd 1.5 1.2 0 2.7
Electro Steel 1.7 0 2.51 4.21
Visa Steel Ltd 0.5 1.0 0 1.5
NMDC JV with Govt. of
Karnataka
0 0 3.0 3.0
SAIL 12.8 5.6 3.0 21.4
RINL 3.0 3.6 0 6.3
POSCO, Uttam Galva JV 0 0 3.0 3.0
*million tones per annum. Source : Ministry of Steel annual Report, JPC, IBEF
Source: Ministry of Steel Annual Report 2015, TechSci.* April to December 2014
16.05
11.05%
3.84%
68.79%
India's Crude steel market
share by production - FY 15*
SAIL
Tata Steel
RINL
Other
10.1%
2.8%
0.6%
86.5%
India's finished steel market
share by production - FY 15*
Sail
Tata
Steel
RINL
CAPACITY AND PLANNED CAPACITY ADDITION BY 2016-17 IN
INDIAN STEEL INDUSTRY
SHARES IN STEEL PRODUCTION BY SECTORS IN INDIA IN 2015
13

18. Sector State Plant
(including alloys plants)
PUBLICSECTOR
Chhattisgarh Bhilai Steel Plant
West Bengal Durgapur Steel Plant
Odisha Rourkela Steel Plant
Jharkhand Bakaro Steel Plant
West Bengal IISCO Barnpur Steel Plant
West Bengal Alloy Steel Plant
Tamil Nadu Salem Steel Plant
Karnataka Visvesvararya Steel Plant Ltd
Andhra Pradesh RINL / Vizag Steel Plant
Total Public Sector 9 plants
PRIVATESECTOR
Andhra Pradesh 47 9
Arunachal Pradesh 1
Assam 12
Bihar 42
Chandigarh 2
Chhattisgarh 69 57
Daman 12
Dadar Nagar Haveli 27
Goa 20 3
Gujarat 60 2
Haryana 14
Himachal Pradesh 15
Jammu & Kashmir 7
Jharkhand 131 64
Karnataka 29 31
Kerala 41 2
Madhya Pradesh 15
Maharashtra 74 13
Meghalaya 12
Delhi 3
Odisha 116 122
Pondicherry 19
Punjab 128
Rajasthan 62
Tamil Nadu 116 7
Telangana 45 15
Uttar Pradesh 95
Uttarakhand 21
West Bengal 86 41
Total Plants in Private Sector 1321 plants
(Out of which 366 are Sponge Iron plants)
Source: Joint Plant Committee (JPC)
GEOGRAPHICAL DISTRIBUTION OF STEEL INDUSTRIES IN
INDIA
14

19.  STATUS OF SOURCE OF IRON ORE FOR
STEEL INDUSTRY IN INDIA.
Major Producer of Iron ore states with numbers of mining leases under operation and
non working
Source: State Govt.
Steel Producing States Depended for Iron ore
Odisha Odisha
Chhattisgarh Chhattisgarh, Odisha, M P
Karnataka Karnataka
Andhra Pradesh Karnataka, Andhra Pradesh
Maharashtra Odisha, Karnataka, Goa, MH
GOA Goa
Madhya Pradesh Madhya Pradesh
Jharkhand Odisha, Jharkhand
West Bengal Odisha, Jharkhand
Gujarat Odisha, Karnataka, Chhattisgarh
Kerala Karnataka
Telangana Telangana, Andhra Pradesh
Sl.
No.
Name of the
State
Number of
Working Mines in
2014-15
Number of Non-Working Mines Total
1 Andhra Pradesh 42 20 62
2 Chhattisgarh 15 3 18
3 Goa 0 330 330
4 Jharkhand 11 46 57
5 Karnataka 26 69 95
6 Madhya Pradesh 33 3 36
7 Maharashtra 14 12 26
8 Orissa 37 107 144
9 Rajasthan 15 2 17
10 Telangana 4 5 9
Grand Total 197 597 794
Major Steel and Iron ore
producing States
DEPENDEBILITY OF DIFFERENT STEEL PRODUCING
STATES ON IRON ORE PRODUCER STATES
15

20.  SCOPE OF DEVELOPMENT OF STEEL
INDUSTRY IN INDIA
Steel industry reforms - particularly in 1991 and 1992 - have led to strong and sustainable growth in
India’s steel industry. Especially in last decade there is remarkable growth all over the world in steel
sector. In last three years (2013-2016), the economy as well as the steel sector is in the doldrums, the
profits of steel producers have declined by more than 46% in normal terms and even in some cases it
goes to negative side. Medium and small companies in steel have been experiencing huge losses in
recent year.
In this shadow of depression period National Council of Applied Economic Research (NCAER)
launched study to understand what ails our steel sectors and what needs to change the situation.
NCAER elaborated few diagnoses as:
 Slow GDP growth, despite some ‘mystifying’ accounting.
 Low steel intensity in construction.
 India is losing export competitions due to high relative unit cost of labour, capital, logistic
and raw material cost due to regulating procedure which phasing up cost of coal as well
as iron ore.
 Expansion was financed without ‘due diligences ‘in granting and monitoring of loans.
There was high and volatile debt – equity ratio and interest coverage ratio for many steel
companies.
 High and multiple royalty and taxation compare to other countries.
 The country need huge numbers of skilled workers as the workforces migrating from
manufacturing sector to service sector because of better job prospect under secure HR
benefits and smooth practices.
 Unrealistic concept and practice of bulk transport system with multiple levy system.
Even though Indian steel industry passing through a bad phase the finding of study
of NCAER suggest that a better day is ahead because,
 The steel sector in India has very high potential. Indian steel industry is quite young
compare to other developed countries. India as a late comer has the advantage of
leapfrogging to the latest technology that is efficient and eco-friendly.
 India has potential market for steel, per capita consumption of steel is still low compare
to all other countries and scope of growth is promising with steady growth in GDP.
******************
16

22. Upcoming Book
Contact Details: SUBRAT KUMAR KAR Mob: 9437037349
Word No. 22, Raghunathpur
Baripada,
PIN- 757107
E-mail: kar19692003@yahoo.com
INDIAN STEEL INDUSTRY- PAST, PRESENT
&
FUTURE
By
Subrat Kumar Kar
The history of steel making in India can be traced to ancient period
since 400BC, but first notable attempt was taken to install steel plant in
1874 by Bengal Iron Work (BIW) at Kulti near Asansol in West Bengal.
However attempt was also made by British entrepreneurs in 1830 at Porto
Nova. Further attempt was made by Jamshedjii Nuserboanjii Tata(1839-
1904) to establish modern steel making plant in Jamshedpur and era of
modern steel making began than.
The book has been designed to furnish proper information about
the history of development of iron and steel industries in India since
ancient period, the technology being adopted by different industries,
upcoming cost effective technologies, availability and proper utilization of
raw materials, easy methods of beneficiation of low grade iron ore,
management of manpower for efficiency gain, hurdles and scope of
development of Indian steel industry.
Objective of this book is to educate Industrialist, Metallurgists,
student of Geology and teachers of universities regarding techno
commercial utilization of different raw materials for steel making and to
develop multi end use facilities to compete international steel market.