Share of PSUs in steel output shrinking: govt data

The sector had accounted for 17.09 MT of crude steel production in 2007-08 falling to 12.51 MT in the five-year period

The share of public sector in steel output has declined, while contribution from the private sector has increased since 2007-08, according to government data.

Public sector share has declined from 32% in 2007-08 to 21% in April-December 2012, according to the Steel Ministry data.

The sector had accounted for 17.09 million tonnes (MT) of crude steel production in 2007-08 which has declined to 12.51 MT in the five-year period.

Country's total steel output was recorded at 53.86 MT in 2007-08 and it rose marginally to 58.33 in April-December, 2012.

On the other hand, the private sector, which accounted for 68% share in the crude steel production five years ago, has increased its share to 79% with a number of expansion and modernisation plans.

Tata Steel, a major private player will increase capacity, through brown-field expansions, at its Jamshedpur facility to 9.7 million tonne per annum (MTPA) by 2017-18 from 6.8 MTPA now.

JSW Steel's capacity would also go up to 16.5 MTPA from 14.3 MTPA at present.

Among the firms having lower capacity, Jindal Steel and Power's capacity through brown-field expansions will go up by 0.75 MTPA to 4.25 MTPA by FY 2018, the data said.

Bhushan Steel would add around 2 MTPA capacity to take the tally to 5.2 MTPA.  Monnet Ispat & Energy and Visa Steel are also expanding their respective capacities.

India's total steel making capacity, including that of the secondary producers, at the end of 2011-12 stood at 89.29 MTPA and is projected to expand to 200 MTPA by 2020.

The Ministry is hopeful that public sector too will increase its share with two state-run firms—Steel Authority of India ( SAIL) and Rashtriya Ispat Nigam (RINL) already implementing modernisation plans.

SAIL's expansion plan in all of its five major plants will take its capacity to 21.40 MTPA from 12.84 MTPA.  RINL is on the verge of completing its expansion to seven MTPA from three MTPA.

The current capacity of the 10 major Indian steel makers stands at 54.5 MTPA and this will go up to 78.5 MTPA by FY 2018 with the ongoing capacity expansions at their existing plant locations.

India is projected to grab the second slot in the world steel production within a year or two on new capacity expansions, mainly through the brown field route.