India Targets 300 Million Tons Annual Steel Production in Next Decade

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--India's Steel Ministry has contracted Boston Consulting Group (Boston, Massachusetts) to conduct an independent analysis of the challenges hampering steel manufacturers as they aim for the country's 10-year production target of 300 million tons per year.

The target, which was set by Prime Minister Manmohan Singh, is almost 350% higher than the current production of 90 million tons per year.

The ministry also has initiated an internal study to assess the situation. Both studies are set for completion within three months.

SAIL, India's largest steelmaker, has set out its Vision 2025 plan, in line with the national target. It is looking to reach an annual capacity of 50 million tons, up from the current 15 million tons. It plans to reach 19 million tons by the end of this fiscal year in March.

The ministry has identified iron-ore availability as one of the challenges for increasing steel production. Production of 1 million tons of steel requires 1.5 million to 1.6 million tons of iron ore. Iron-ore production has fallen from 219 million tons in 2009-10 to 140 million tons in 2012-13.

For related information, see December 31, 2013, article -- Slowdown in Consumption Puts Brakes on Indian Steel Demand Growth.

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