India to become second biggest steel player in global market.

The Indian steel industry is calling on the government to further improve business climate by lowering taxes and give support in sourcing funding from banks and financial institutions.

Rita Singh, Chairman and Managing Director, MESCO Steel, has called upon the government to declare steel as a strategic industry, and help the industry get long term financing.

Echoing the industry concern, She requested the Steel Ministry to exhort banks and institutions to help the industry with funding because “the greenfield industry in India takes a long time”.

Infrastructure is another area that needs to be addressed, added Singh, pointing out that brownfield projects should also be helped with faster financial closure.

Speaking about reducing the dependence on imported coking coal, she felt that “captive mines should be allowed to sell a certain percentage of iron ore.”

Singh and other chief executives of steel mills highlighted opportunities at “India Steel 2017” exhibition and conference in Mumbai, 19-20 April 2017.

P. Madhusudan, Chairman and Managing Director, Rashtriya Ispat Nigam Limited, highlighted the fact that India has become a net exporter after a lapse of three years.

“Today we are the third largest steel producer and by 2019 we expect to be second.”

Urbanisation and the Government’s aim of developing housing for everybody will give the industry a boost.

T V Narendran, Managing Director, Tata Steel Limited said a lot of investment will be needed to drive growth.

“Either industry generates it or investors find it attractive and put in money.”

A lot needs to be done on costs. India’s logistics costs are the highest in the world. The growth of India’s steel industry will be a great opportunity for the capital equipment market across the world.

This is an opportunity for them to invest in India, he felt.

He was also of the view that the steel industry needs to be showcased properly to make it an attractive career option for today’s youth.

Naveen Jindal, Chairman Jindal Steel and Power Limited, appreciated the government appropriate intervention to safeguard duty prices of imported steel and implementing dumping duties.

Expressing his pleasure in the growth of exports, he announced: “This is just the beginning and our commitment to the nation is that we, with support from the Government, will make new records.”

He was confident that by next year India can be the largest steel producer in the world.

However, the Government needs to address the high taxes and duties that make the industry uncompetitive. He also disclosed that next month, JSPL will be commissioning India’s largest blast furnace of 4554 cubic metres.

P K Singh, Chairman, Steel Authority of India Limited (SAIL) described the industry as being on a path of revolution over the next 10-15 years.

The expansion target of 300 million tonnes by 2030 is massive and will require downfield and greenfield expansion of the industry, he said.

Consumption will have to grow. The government is exploring the idea of using steel in pipelines and this is exciting for the industry, he disclosed.

Dr Edwin Basson, Director General, World Steel Association, said India is poised to become the third largest user and producer of steel.

It may even reach the number two spot after China.

“India is the focus for optimism in our global steel industry,” he said.

Basson explained that India has a successful economy from the steel perspective, a large, young population, the need for infrastructure, a good labour force and a strong history of production.

Yet, he cautioned, globally there is a decline in the demand for steel. This is partly due to the success of the industry. “We have better and stronger steels; we don’t need as much as we did 20 years ago.”

Basson foresaw that industry will have to be ready to face a future with slower growth than in the past.

Inaugurating the conference, Chaudhary Birender Singh, Minister for Steel, said “I want as much growth and one per cent more.”

Production increased by 9 per cent last year, so it should go up by 10 per cent this year, said the Minister. Fii-news.com