India's steel demand is likely to
jump by over 70% to 113 million tonnes (MT) by the end of the next Five-Year
Plan, with the infrastructure sector projected to witness investments worth $1
trillion.
A panel appointed by the Steel
Ministry to assess demand and supply of steel in the 12th Five-Year Plan
(2012-17) has estimated that steel demand would grow by 36 MT during the period
to touch 113 MT in its final year, a source in the ministry said.
India's total steel demand stood
at 65.61 MT last fiscal. The panel chaired by the Steel Ministry's financial
advisor S Machendranathan, and comprising representatives of all leading
steel-makers and associations, estimated that steel demand would grow by 10.3%
annually if the country maintains a 9% GDP growth rate, as projected by the
Planning Commission in its Approach Paper for the 12th Plan.
However, the panel does not see a
need for increased imports of steel to meet India's growing demand, as the
domestic industry is slated to add 40 MT of additional finished steel-making
capacity during the 12th Plan, taking it to 115.3 MT by 2016-17 from 75.3 MT in
FY13.
Source: The Economic Times
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