Government says India to rise to No.2 global steel maker by 2016

19 Apr 2007

New Delhi: The government expects India to emerge as the world''s second-largest steel producer by 2016 with an envisaged steel making capacity of 120 million tonnes per annum, a three-fold rise from the current installed capacity.

According to R S Pandey, steel secretary, the government had projected 65 million tonnes of production capacity by 2010-11 in the national steel policy, which has now been revised to 80 million tonnes.

The country is currently the world''s seventh-largest steel maker with a 44-million tonne capacity. According to Pandey, India had been moving up the ladder, from the ninth spot in 2004 to the eighth in 2005, adding, "we are witnessing an era of resurgence in the steel sector."

"Tables have turned. Indian companies are on buying spree abroad and they are acquiring companies of much bigger size than theirs. We are growing much faster at about 1.5 times what we had anticipated," he said.

Asked whether this could lead to a glut in the market, Pandey said, "All investors have done their home work. Demand is really going to shoot up in India and to meet that they (producers) are gearing up."

He mentioned Tata Steel''s acquisitions of the Anglo-Dutch firm Corus for over $12 billion and Essar clinching $1.58-billion takeover of Algoma steel in Canada.

China is the world''s largest steel maker with a capacity of 418-million tonnes, followed by Japan at 116-million tonnes and US with 98-million tonnes.