India to Become World's Second Largest Steel Producer

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Researched by Industrial Info Resources India (Delhi, India)--With support from industry-friendly policies and recent initiatives from the new government, India is poised to become the second largest global steel producer after China, said the world's largest steel producer ArcelorMittal S A (Luxembourg) (NYSE: MT) in a statement.

According to the steel-giant economic prospects in India have changed since the election and the company hopes that there will be significant changes in economic reforms of the country and the mergers and acquisitions in the country's steel sector will also continue.

"Economic prospects have improved in India as the new government has won a Parliamentary majority in the Lower House, which breaks the long run of coalition governments and is expected to allow for significant economic reforms," ArcelorMittal said in a report.

Amid speculation over the fate of its existing $18 billion projects in India, ArcelorMittal has said it continues to pursue Jharkhand and Karnataka projects with progress on land acquisitions and raw material security front.

In Karnataka, the government has transferred 1,076.46 hectares of private land in the company's name. In Jharkhand, the company has received the requisite consent from villagers for acquisition of land under the consent award scheme of the state government.

Further, the company has secured environmental clearance for the allocated Karampada iron-ore mine in Jharkhand and applied to the state government for forest clearance, which is now with India's Ministry of Environment and Forest (New Delhi) for final approval.

The company has also completed exploration work at the Seregarha coal block in Jharkhand and has applied to the Government of Jharkhand seeking mining lease and for final approval by the coal ministry. The Karampada mine region is estimated to have 200 million tons (MT) of iron ore reserves.

In India's biggest foreign investment pullout, ArcelorMittal in July 2013 scrapped its $12 billion steel plant in Odisha over inordinate delays in acquiring land and securing iron ore linkages.

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