India is targeting to hit 300 million mt
of production capacity by 2030. What steps are being taken to achieve this and
how much of the new capacity expansion is expected to be through the EAF/IF
route and BF route?
India's national steel
policy has clearly identified the road map for reaching 300 million mt steel
production capacity by 2030 to meet the projected demand of 255 million mt of
crude steel at the time. We have already crossed 161 million mt of capacity,
comprising 67 million mt by blast furnace-basic oxygen furnace route, 36
million mt by electric furnace and 58 million mt by induction furnace route.
All major integrated
steel players are working on, have announced or are contemplating new capacity.
I am optimistic that the vision set out in the steel policy will be met. We
understand secondary steel sector dispersed across the country is also
considering expansion.
The government, through
its initiatives and polices, has been in continuous discussions with investors
and stakeholders. Today, the mineral-rich states of Odisha, Jharkhand,
Chhattisgarh and Karnataka are all on the threshold of witnessing significant
investments in the creation of steel capacity in those states through setting
up industrial hubs, special economic zones and steel plants.
As our demand is
growing at CAGR of 7%-8%, and with the Indian government pushing for the
creation of world-class infrastructure, we are expecting that steel demand is
likely to grow either at the same or higher rate.
Indian
Steel Minister Jyotiraditya Scindia recently indicated mandating steel
producers to allocate a portion of their overall production to green steel.
When is this expected to be implemented and how will it impact the steel
industry's production commitments?
India and its iron and
steel industry are committed to reduce CO2 emissions intensity. Following
Indian Prime Minister Narendra Modi's commitment in COP26 in Glasgow, we are
aiming to achieve Net Zero Carbon by 2070. Majority of Indian companies have
announced their decarbonization strategy through the principle of carbon
minimization, carbon avoidance and carbon recycling. Carbon capture and
utilization is being considered as one of the main opportunities available
besides improving energy efficiency, adopting advanced technologies leading to
lower carbon footprint, and waste utilization.
India's steel ministry
is working on a detailed decarbonization strategy. We have formed 13 task
forces to help the government understand how we can respond to the demands to
produce low-carbon emission or green steel. We have many experts drafted to the
task forces, and we are eagerly awaiting the report from them.
No consensus has been
reached on the definition of green steel among global steel producers. Our
focus is on minimizing carbon emissions intensity in production of steel.