Odisha to have 75 mt steel capacity by 2025-26: Study

Odisha would have an incremental steel capacity of 59.6 million tonne per annum (mtpa) by 2025-26, taking its overall installed crude steel capacity to 75.6 mtpa, up from the existing 16.2 mtpa.

The capacity augmentation in steel by Odisha would be the highest among all states followed by Jharkhand that is projected to add 56.8 mtpa by the period, says an infrastructure study report commissioned by Mecon Ltd for Union steel ministry.

Jharkhand is currently the biggest steel producer boasting of an installed crude steel capacity of 20.5 mtpa and the state is expected to retain its top slot even in 2025-26 when its projected capacity would be 77.3 mtpa.

Presently, the country's total installed steel capacity is 98.3 mtpa. Eastern states comprising Odisha, Jharkhand, West Bengal, Chhattisgarh and eastern Andhra Pradesh account for 68 mtpa.

New steel capacity of 201.2 mtpa is poised to be added by 2025-26 of which the eastern region's contribution is pegged at 175.5 mtpa. Total projected steel capacity in the country is expected to reach 300 mtpa and eastern states will contribute a whopping 243.5 mtpa to this output.

The report says to reach the envisaged level of 300 mtpa, steel industry has to grow 12 per cent year-on-year for the next 10 years. The raw material challenge to cater to this steel output is formidable. The pegged requirement of inputs to steel making is 490 mtpa iron ore, 95 mtpa of limestone and dolomite, 150 mtpa coking coal, 80 mtpa non-coking coal and 19 mtpa of ferro alloys.

According to the study report, 80 per cent of coking coal requirement of states except Jharkhand will be met through imports. Besides this, 20 per cent of non-coking coal requirement for DRI plants and five per cent of all iron ore would be met through imports. Annual water requirement to meet 300 mtpa steel production is 707 million cubic metres.