By Bizodisha Bureau, Bhubaneswar, October 23, 2018: Indian steel industry is expected to invest 128 billion US dollar for creation of new capacity as the national steel policy 2017 envisages 300 million tonne crude steel capacity by 2030-31,Union Steel minister Choudhary Birendra Singh said here today.

Addressing the Conclave on Capital goods for Steel Sector: Manufacturer in India, organised by the Steel ministry, Mr Singh said India will be one of the main drivers of global steel demand on the back of string domestic consumption.

The new policy, the union Minister further said, will make Indian steel industry globally competitive in terms of productivity, technology and quality production.

Singh said India will have to import large number of critical plant and equipment valuing almost 25 billion US dollar to meet the needs of the steel industry by 2030-31.

In his keynote address Chief Minister, Naveen Patnaik, said the MoUs inked today for the CG sector has the potential of transforming India into a world-class manufacturing hub.

Patnaik said that the state produces about half of the country’s iron ore, which makes it an ideal location for setting up steel industries.

The installed capacity of crude steel making in Odisha has grown to 33 million tonnes (MT) per annum today from just 4 million tonnes (MT) per annum in 1999-2000, he said.

“Odisha’s natural strength lies in being a mineral rich State. This State contributes nearly 14% of the total mineral production in India. Over the past two decades, my Government is focused on enhancing the production level of the key minerals along with manufacturing of value-added products in the State,” Patnaik said.

“Odisha has emerged as the major steel hub of the country. Odisha has always been a preferred destination for metal sector investment and to further enhance the downstream eco-system in the steel sector of the State, my Government is bringing out a roadmap ‘Vision 2030’ for development of downstream units with a focus to achieve more than 50% value addition to the primary metal produced in the State. This would become the blueprint for attracting downstream units in the steel sector to the State,” said Patnaik.

“My State is taking significant steps in building the support infrastructure for development of industries. Over the last 18 years, our port handling capacity has increased by tenfold to 190 million metric tonnes (MT) per annum. Power generation capacity has increased more than threefold and road network has increased over 50% during this period which are key considerations for growth of the steel sector,” he added.

Speaking on the occasion, Union Heavy Industry and Public Sector Enterprises Minister Anant Gangaram Geete asserted that the Indian manufacturing companies have the capability to manufacture all non-proprietary items and the Government is committed to facilitate technological tie-ups between domestic CG producers and their foreign counterparts for capacity building.

He recalled that his ministry has helped in building a machine tools hub in Karnataka and suggested that his ministry proposes to do the same in Odisha and sought the state government’s cooperation in this regard

Union Minister for Petroleum and Natural Gas and Skill Development & Entrepreneurship Dharmendra Pradhan said that Odisha has mega steel projects besides small and medium steel mills which also contribute significantly to the state’s overall steel production. The Government believes that Odisha has the potential to produce nearly 100 Million Tonne of the total 300 MT output targeted by 2030-31 as the state is home to sizeable mineral resource base. He welcomed the proposal by Mr Geete to set up a machine tools park in Odisha.

Secretary, Ministry of Steel, Binoy Kumar, said, it is in the interest of stakeholders that the Capital Goods Industry should be strengthened so that competition increases, and this helps in reducing the capital cost of projects. Today, the imported plants may come at a lower cost but this is more often than not followed by their high priced maintenance contracts and spares. By local manufacturing, the maintenance of plant and machinery can also be done economically, he added.

Adam Szewczyk, Head – Economic and Statistical Analysis of the World Steel Association said India steel demand is set to develop in the short and medium term due to favourable macro-economic conditions and ambitious reform agenda. It will be very soon the second biggest market in the world, he said.