SteelMint’s capacity expansion data shows that in 2021 a total of 70.5 million tonnes (mnt) of additional pellet production capacity has received environment clearance (EC) from the Indian government as well as the consent to establish (CTE).
The growth in proposed capacity expansion in CY’21 has been phenomenal, with India’s current pellet-making capacity standing at over 111 mnt.
Proposed sponge iron (DRI) capacity that received EC and CTE in CY’21 stands at 14.43 mnt and India’s sponge iron production in CY’21 was recorded at over 37 mnt, as per SteelMint data.
Boost to crude steel capacity
Data shows a total of 27.15 mnt of additional crude steelmaking capacity received EC and CTE in CY’21.
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).
Of the over 27 mnt of proposed crude steel capacity expansion in CY’21, around 70% — or 18.65 mnt – is from the electric arc furnace (EAF) and induction furnace (IF) route, while 8.5 mnt is from the basic oxygen furnace (BOF) route.
In addition, 14.55 mnt of new blast furnace (BF) hot metal production capacity received CTE in CY’21. As per SteelMint estimates, India’s crude steel capacity has risen to 155 mnt at the end of CY’21.
Longs & flats
Mills have received approval for expanding production capacity of long steel products such as rebar, wire rod and structurals by over 19 mnt in the year gone by, while flat products such as HRC, CRC and plates witnessed a more modest growth in capacity of 3.73 mnt.
Further, in CY’21, the country’s steelmaking raw materials handling capacity received a boost with nearly 20 mnt of iron ore beneficiation capacity and 7.43 mnt of new coke-making capacity receiving requisite clearances.
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