India needs to add 100 mn tonnes of steel making capacity by 2030: Secy

India needs to add 100 million tonnes (MT) of steel making capacity by 2030 on priority to avoid becoming dependent on imports, Steel Secretary Sandeep Poundrik said on Friday.

He also pointed out that slumped steel demand and over capacities globally have affected domestic industry.

The official made the remarks at an event organised by Indian Chamber of Commerce (ICC) in the national capital.

One priority is to create more capacity. India has about 200 MT steel capacity at present. Roughly 20 MT was added this financial year, he said.

"So we have to add another 100 MT of capacity in next six years. If we don't do that, then we basically become dependent on the imports," the Poundrik said addressing the session 'Viksit Bharat: India@2047 through Prism of Steel Sector'.

Under the National Steel Policy (NSP) 2017, the government has set a target of scaling up India's overall steel manufacturing capacity to 300 MT by 2030.

Another priority, the secretary said, is keeping domestic steel industry competitive because of the stagnating consumption in other major economies including China, USA, even Europe and the overcapacity in the world.

"...if we want to protect our domestic industry, then domestic steel prices will have to be competitive so that there are enough margins in the steel industry so that they can invest in expansion of capacity. If they don't have margins, who will invest," the secretary said.

He further said that as the world moves to less carbon emission, domestic industry will also have to move to green steel manufacturing process.

"If we want to be leaders in this sector in the world, we will have to transition to less carbon-intensive methods and production methodologies. So, that's second priority," the official said.