Letter to BS: Insolvency helps, but steel needs more to improve capacity

This refers to “How insolvency is reshaping steel” (January 22). It is true that ownership of a few steel companies has changed, thanks to insolvency proceedings under the Insolvency and Bankruptcy Code (IBC), but the annual steel output of our country needs to go up if India has to develop faster. Though the IBC is helping major Indian steel producers consolidate their capacity by taking over the stressed assets, the total steel capacity, nationwide, has not changed. What we need now is a few greenfield steel projects to significantly augment the capacity, thereby giving a much-needed fillip to economic growth.

Sanjeev