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Steel capacity to be 240 mt by 2020

23 August 2006: If all of the proposed capacity expansion and greenfield ventures announced by various domestic and international steel manufacturers in the country see the light of the day, India will achieve a capacity of over 240 million tonnes per year by 2020.

The ore rich states of Orissa, Jharkhand and Chattisgarh have signed a slew of pacts with steel corporates for the setup of projects in these states but this is not the first time this has happened.

Back in the 90's too, there was a similar exodus focused on Orissa with a host of proposals for steel plants to be setup that included the likes of Tata Steel and Kalinga Steel floated by Swaraj Paul. Of these, only Nilachal Ispat Nigam Ltd (NINL) and Mideast Integrated Steels have seen the light of day.

While environmental issues claimed some projects, others got stuck in local opposition to land acquisition or the lack of a transparent mining policy that could assure the supply of iron ore. Some others suffered from the lack of infrastructural support.

Source: Business Standard