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Inviting suggestions on Increasing Steel Demand
Notwithstanding the current challenges, Indian steel industry has significant potential for growth The per capita steel consumption in India at 61 kg is much lower than the global ...
Notwithstanding the current challenges, Indian steel industry has significant potential for growth The per capita steel consumption in India at 61 kg is much lower than the global average of 208 kg or that of other major steel producing countries. The planned investment in infrastructure sector, expansion of railways network, development of domestic shipbuilding industry, opening up of defence sector for private participation, anticipated growth in automobile and capital goods industry and the construction in urban & rural areas and the continued investment in Roads and Highways are expected to create significant domestic demand for steel. With GDP growth of 7.5% per annum till 2030-31, crude steel demand in the country is expected to increase to 120-125 MT by 2019-20, 155-165 MT by 2023-24, and 235-275 MT by 2030-31, requiring a significant increase in capacity and production of steel within the country.
Some of the measures identified by Ministry of Steel to boost Steel demand in near future are:
1) Rural sector:
The low per capita steel consumption in the rural sector of about 12 kg provides substantial scope for growth specifically under: Housing under the Pradhan Mantri Awas Yojna, Saansad Adarsh Gram Yojna etc. can be brought to steel based platform
Rural housing targets to achieve 1 crore dwelling units in next 3 years and usage of steel based structures will provide huge impetus to the demand of Steel`
2) Urban sector:
Commercial and residential buildings and flyovers could be targeted.
“Housing for All” Mission by 2022 can directly contribute to pre-fab and precast mass affordable housing, which in turn will lead to higher consumption of steel.
Bridges, pavements and crash barriers used in Roads & Highways can be upgraded to steel bridges, steel reinforced pavements and steel crash barriers respectively.
3) Road, Highways & Bridges:
There are over 1 lakh bridges in the country and “conditions survey” is being conducted by Ministry of Road Transport and Highways (MoRTH) for rehabilitation/ reconstruction of 1500 road bridges. Further, 208 “Road over bridges” (ROBs) are identified for re-construction within the next 2 years by the Public Works Departments. Steel intensive bridges can be used in place of conventional RCC bridges, wherever possible because of cost advantage, quicker installation and longer life span.
Usage of steel in railways is mainly limited to laying of railway tracks, rolling stocks, wagons and coaches. However, there is considerable scope of increasing steel usage in making railway station, foot over bridges, rail coaches, construction of steel based railway colony buildings especially in seismic prone areas, construction of dedicated freight corridors & superfast rail corridors and construction of more steel bridges for saving time & CAPEX.
Railways are shifting from overhead electrical setups to underground systems. The existing overhead poles & other fittings may be given to interested players in the steel sector for conversion to underground conduit pipes. Efforts will be made with Ministry of Railways to increase the usage of steel in Railways.
5) Defense, shipbuilding and other manufacturing sectors:
The “Make in India” initiative is expected to witness significant investment, which will stimulate steel demand. However, such benefit can only be passed on to the domestic steel producers if it is made mandatory for government funded/PPP projects in these sectors to source a part of their steel requirement from domestic producers.
Ministry of Steel is taking up with Ministry of Urban Development, Ministry of Rural Development and Ministry of Road Transport & Highways and other Ministries concerned and also with the State Governments to increase steel usage in rural and urban sector, especially in construction and infrastructure development.
All stakeholders concerned are therefore requested to submit their comments/ suggestions on MyGov by 30.11.2016.