Steel majors agree on joint R&D
IN FOCUS / STEEL
| Indian steel majors agreed to share research and development data to bring down cost of production and reduce energy consumption. |
| This would help them resist the onslaught of the Asian steel giants who were working to set up plants in India soon, said sources. |
| A decision in this regard was unanimously adopted at a seminar on energy conservation in the steel industry held recently. |
| Nippon Steel of Japan, Posco of South Korea and Bao Steel of China have announced their intention to set up plants in Chhatisgarh and Orissa on a war footing. |
| Senior steel sector officials admitted that till now, steel research and development work was confined to the company conducting the project. |
| "Now that giants have decided to set up their units in India, domestic companies are left with no choice but to join hands," a senior official of a private steel major attending the seminar said. |
| Indian steel majors were already working on cost reduction, he added. |
| Tata Steel has started energy audit for equipment and processes in alliance with Electrical Research and Development Association (ERDA) to bring down cost of production by reducing energy expenses. |
| Sources claimed minor modifications in production processes could reduce expenditure on energy by five per cent. |
| A pilot project in Gujarat had proved this. |
| "This will help bring the cost of production almost at par with companies like Nippon, Bao or Posco," the source confirmed. |