India's steel production is
expected to grow by 4-5 percent this fiscal against a target of 8 to 10
percent, but the situation would improve next fiscal if parliament
passes the land acquisition bill and the new mining bill, according to the Institute
for Steel Development and Growth (INSDAG).
“If the land acquisition
bill and mining bill are passed, then the country's steel industry would have a
stable year next fiscal, as after that many pending projects of various steel
companies will be cleared. There will be capacity expansions of several steel
makers with the greenfield projects coming up,” said INSDAG director
general Sushim Banerjee.
INSDAG is jointly promoted by the
ministry of steel and steel producers.
The steel industry has been
hobbled by many problems. Many projects are delayed due to pending regulatory
clearances in various states.
Also, increased focus of
government agencies in enforcing mining and transportation regulations to curb
illegal mining has led to decline in production of iron ore and disrupted
supply, resulting in shortage of the raw material for steel production.
Banerjee said due to these
problems, the country's steel production, targeted to grow by about 8 to 10
percent, was expected to grow by four to five percent this fiscal.
“Industry is forecasting
about 70 million tonnes production at the end of this financial year against
the targeted 78 million tonnes,” he added.
Source: The Economic Times
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