India's steel demand growth seen crossing 10 per cent

25 Aug 2009

The growth steel demand in the country will soon cross 10 per cent as soon as the effects of global economic slowdown are over, steel secretary P R Rastogi said today

Speaking at the third meeting of the inter-ministerial group on steel, he said steel consumption in the country grew 8.9 per cent in July and production grew 5.9 per cent.

During the April-July 2009 quarter, production grew 3.8 per cent while consumption grew 5.8 per cent.

Emphasising the need for raw material security, Rastogi said the government has so far allocated 12 coking coal and 51 non-coking coal blocks, thereby ensuring 2,700 million tonnes and 7,000 million tonnes of non-coking coal for captive use by the steel industry.

He said only four coal blocks have been made functional and that it was a matter of concern. He urged the industry to expedite the opening of coal reserves concurrent with commissioning of their steel production unit.

He said, the union cabinet recently approved the rehabilitation of Jharia coalfields, where nearly 12 billion tonnes of coking coal reserve are available.