Assuming a GDP growth rate of 8-10 percent in the coming years, it is expected that around 300 million tonnes (MT) of crude steel capacity would be required to meet domestic demand by 2030, Steel Ministry said today.

The issue was discussed at the meeting of the Consultative Committee on measures to increase steel demand, the ministry said.

The meeting, chaired by Steel Minister Chaudhary Birendra Singh, also discussed ways to increase steel consumption in the country.

Some focus areas where steel-based structures can be used are rural development and urban infrastructure, it said.
Under rural development, the housing push under the Pradhan Mantri Awas Yojana (PMAY), Panchayat Ghars, rural schools and hospitals can help in increasing consumption of the metal, it added.

India's per capita steel consumption at 61 kg is much lower than the global average of 208 kg or that of other major steel producing countries (China at 489 kg and South Korea at 1114 kg). Therefore, there is immense scope in the country to raise demand for the metal, the ministry said.

Planned investment in infrastructure and construction sector, expansion of railways network, development of domestic ship-building industry, opening up defence sector for private participation and anticipated growth in automobile sector are expected to create significant demand for steel, it added.

The country's crude steel production capacity stood at 109.85 MT in 2014-15.

 

Source : moneycontrol.com

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