'Policy clarity,green nods imperative for steel sector growth'

As demand for steel is likely to outstrip capacity addition, policy clarity and stability with regard to renewal of mining leases and forest clearances are imperative for the sector's growth, Tata Steel said today.
The steel major, which resorted to iron ore imports this year for first time in its over 100 years of existence facing raw material crunch, said the need of the hour is to steer new investments with appropriate policy support.
"While the emerging scenario looks positive, steel makers in India face a challenging future, as they may not be able to add capacity to keep pace with the rising demand," Tata Steel said in a statement.

India has a little over 100 million tonnes per annum steel-making capacity while it consumed a little over 74 mt in the last fiscal.
"The need of the hour is to steer new investments in the industry with appropriate policy support so as to ensure that production of steel matches growth in consumption," it added.
The company, which has 9.8 mtpa steel making capacity at its Jamshedpur unit, had to suspend a blast furnace for over a month for want of iron ore which would impact production and profitability in the current quarter.

The raw material crunch cropped up following suspension of operations of company-owned mines in Jharkhand and Odisha.

"It is ironical that, as a country, we have to import iron ore despite having some of the best iron ore reserves in the world," the company said.
"Policy clarity and stability, especially with regard to renewal of mining leases and forest clearances, are imperative to ensure the growth of the steel industry," Tata Steel added.
Stating that forecasts indicated that domestic economy would grow at around six per cent, this was good news for the steel industry and Tata Steel would continue to service the market with innovative products and services.
On its greenfield project at Kalinganagar in Odisha, the company said the first phase of the unity with three million tonnes per annum capacity would be progressively commissioned from the early part of 2015.

"Production from the greenfield project will enable us to further consolidate our leadership position in the industry," it said.