SteelMint: Over 12 mnt of crude steelmaking capacity receives govt approvals in FY’22

New domestic crude steelmaking capacity that received necessary government approvals in FY’22 stands at 12.37 million tonnes (mnt) per annum, data maintained with SteelMint shows.

Of the new capacity that received consent to establish (CTE) in the previous fiscal, the share of the BF-BOF route is 2 mnt, while the rest is accounted for by the electric-induction furnace route at a ratio of 16:84, data reveals.

Since Jan’21, approval received for total crude steel capacity expansion is 21.57 mnt. As per SteelMint estimates, India’s crude steel capacity stood at around 155 mnt by the end of CY’21.

Notably, in Mar’22, around 0.88 mnt of crude steel capacity received CTE, which was higher by over 33% compared with 0.66 mnt in Feb. However, Jan witnessed capacity approvals at around 1.09 mnt – the highest monthly figure so far in the current calendar year.

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).