Union Steel Minister Beni Prasad Verma on Tuesday said India was all set to become the second largest producer of steel in the world by 2013, with an installed annual production capacity of 120 million tonnes.
“Currently, India has the fourth largest steel sector in the world, both in terms of capacity and production. By 2013, India will be the second largest steel producer in the world. It is estimated that India will have a production capacity of 120 million tonnes,” Verma said at the ‘Steel summit' organised by Associated Chambers of Commerce and Industry of India (Assocham) here.
India's production capacity currently stands at around 80 million tonnes and this capacity was expected to rise to over 150 million tonnes by 2020. The steel-making capacity of the country was just 51 million tonnes in 2006.
Steel Secretary P. K. Mishra said by the end of the current financial year, the capacity might reach around 90 million tonnes.
“This is likely to cross 110 million tonnes by next financial year when the brownfield capacity addition projects of SAIL, JSW Steel and Tata Steel get commissioned,” he said.
Mr. Mishra said that growth in steel demand averaged 10 per cent over the last seven years and there was a likelihood that the trend would continue at least for the next decade.
“There are expectations that steel demand in the country may exceed 10 per cent at times, during the next 10-15 years horizon. In such a scenario, our steel production capacity should reach 150 million tonnes by 2018,” he added. He hoped the country would be able to meet the demand through domestic production at least for the next five years.