SteelMint: India set to add 2 mn t of domestic crude steel capacity in Aug’21

Indian steel producers have received consent and/or approval for enhancing crude steel capacity by 2.1 million tonnes (mn t) in Aug’21, while hot metal production capacity is set to increase by another 2.95 mn t, monthly data collated by SteelMint reveals.

The expansion plans had been applied for and have received approval for establishment.
SteelMint compiles month-wise data on steel capacity expansion under the establishment stage – covering the entire spectrum of iron and steel production – from domestic units spread across 17 states in the country.

Expansion stages:

Details related to upcoming new capacity expansion are covered and existing unit expansion through new technology is envisaged under consent to establish (CTE) projects. CTE projects are tracked, with existing unit capacity expansion through process optimisation, modification and increase in operational days in a year without installation of any new machinery.

Existing unit capacity expansion through establishment of new machinery and equipment also falls under CTE, which is followed by consent to operate (CTO). This process follows from obtaining environment clearance (EC).

Expansion approval through BOF & IF + EAF:

Of the 2.1 mn t of crude steel capacity enhancement in Aug, 1.5 mn t is addition through the BOF route while 0.63 mn t of capacity has received approval to be added through the induction furnace (IF) steel producers in Chhattisgarh, Telangana and Tamil Nadu.

As per SteelMint data, domestic crude steel production capacity expansion plan, which was applied for and subsequently received approval, stood at 22.9 mn t in the Jan-Aug period, of which around 11.6 mn t – roughly 50% – is set to come from the BOF route, while capacity additions from the IF and EAF routes stand at a little over 11 mn t.

Pellets, long products:

Notably, pellet capacity addition that received approval under the establishment stage stands at 7.2 mn t in Aug, with an integrated steel producer and a major central India-based mill increasing capacity. More than 35 mn t of pellet capacity expansion plan has been approved in the Jan-Aug’21 period.

Long steel (TMT + structural steel) rolling plants have received approvals for 0.97 mn t in Aug, with central and southern India mills ramping up capacity.

Domestic long steel capacity expansion plan has been approved by more than 15 mn t since Jan’21, while HRC, CRC and plate capacity expansion has received go-ahead for more than 7 mn t in the Jan-Aug’21 period.

Meanwhile, in order to sustain growing steel capacity, major Jharkhand- and Odisha-based players have received permission to establish, and subsequently operate, considerable iron ore beneficiation, sintering and coke-making capacities.

Steel capacity expansion approved by environment clearance/consent to establishment: