JSPL to double Angul plant production to 12 MTPA
The Indian steel sector will require an incremental capital investment of Rs.10 lakh crore to meet the 300 million tonnes a year (MT) steel-making capacity and 160 kg per capita steel consumption by 2030-31 as per the National Steel Policy (NSP) 2017, said Jindal Steel and Power Ltd (JSPL) which has invested US$12 billion globally and intends to double the capacity of Angul plant in Odisha to 12 MTPA from from 6 MTPA.
Despite the COVID-19 induced lockdown, the mill group’s steel production grew 8% quarter-on-quarter in the first quarter, and sales were up 12%, said JSPL in a report released 30 June 2021.
It has also reported improving market outlook, especially China’s decision to reduce steel exports and increase domestic supply.
In April 2021, Beijing announced to end export tax rebates and cut import tariffs for some steel products. These decisions will likely benefit India’s integrated steel producers by reducing imports and increase exports to China, noted the JSPL report.
India’s steel industry is also expected to witness a significant rise in steel plants capacity utilization to 85% by 2030-31 from 78% in pre-pandemic times in 2019.
The government has taken measures to ensure healthy growth of the steel industry and approved introduction of the Production-Linked Incentive (PLI) Scheme in Specialty Steel to enhance India’s manufacturing capabilities and exports, said the report, also citing the nation wide developments and industrialisation programmes.
India is rich in metal mineral resources providing the metal processing industry with affordable raw materials. This industry is important as it helps to create a competitive advantage for end-use sectors from where it sees maximum consumption, said the report.
The Indian steel sector contributes approximately 1.4%-2% to its GDP and forms the backbone of the manufacturing industry, the report pointed out.
India is home to some of the largest steel players such as JSPL, TATA Steel, JSW and Steel Authority of India (SAIL). The country’s steelmakers are the second-largest producers of crude steel in the world after China and the third-largest consumer of finished steel after China and the United States. #investment #manufacturing #projects #infrastructure /fiinews.com
