SteelMint: Over 1 mnt of crude steelmaking capacity receives govt approval in Jan’22

New crude steelmaking capacity that received necessary government approvals in Jan’22 stands at 1.09 million tonnes (mnt), month-wise data maintained with SteelMint show.

The new capacity that received consent to establish (CTE) in Jan comes entirely from the electric arc furnace and induction furnace route. While the share of new IF capacity in Jan was over 0.7 mnt, the EAF route had a share of over 0.36 mnt, data show.

Since Jan’21, approval received for total crude steel capacity expansion is 20.03 mnt. As per SteelMint estimates, India’s crude steel capacity has risen to 155 mnt by the end of CY’21.

CTE

The approval concerned is consent to establish (CTE). Notably, new technology is envisaged for projects at the CTE stage of clearance. Such projects have received approval for existing unit capacity expansion through process optimisation, modification and increase in operational days.

Existing unit capacity expansion through installation of new machinery and equipment also falls under CTE, which is followed by the consent to operate (CTO).

In Jan’22, CTE approval for long steel capacity expansion stands at 1.008 mnt. Mills received approval for expanding production capacity of long steel products such as rebar, wire rod and structurals.