India’s steel consumption is likely to touch 122 million tonnes (MT) by 2015 from the current base of about 70 MT.
This would be achieved with the sector’s compounded annual growth rate (CAGR) of about 15 per cent, Associated Chambers of Commerce and Industry of India (Assocham) said on Thursday.
“Rising demand from sectors like agriculture, consumer durables, capital goods, oil and gas and water is the key growth driver behind this upward spiraling steel demand,” Assocham secretary general D S Rawat said while releasing the study. Given the growth prospects for economy, domestic steel production is likely to double from the existing level in the coming years. The industry body has called for innovative compensation packages for displaced people including the skill development initiatives to provide them employment opportunities.
Domestic steel companies must target countries like Australia and Mozambique to make up for the low reserves of coking coal, Rawat said.
“Considering that India is self-reliant in iron ore production, steel companies must intensify efforts to develop technologies to make use of iron ore fines and thermal coal for steel production.”
Besides, ASSOCHAM has suggested the steel ministry to form a core group comprising representatives from academics, industry and equipment designer capable of using locally available raw material.
There will be a greater emphasis on usage of information technology (IT) in process technology, supply chain management and customer relationship management in steel making in the years to come, the study said.
“Large youth population in Uttar Pradesh can be groomed, trained and transformed as IT professionals and skilled workforce of the steel industry in future,” he added.
Meanwhile, ASSOCHAM has organised a conference on ‘Indian Steel Sector’ in Lucknow tomorrow, which would be inaugurated by steel minister Beni Prasad Verma. Steel secretary P K Mishra, SAIL CMD C S Verma and JSW CMD Sajjan Jindal would be present on the occasion.
