India Needs $120 Billion for 300 Million Tonne Steel Target by 2030

New Delhi, Nov 20 (PTI) India needs investments worth USD 120 billion to install 120 million tonne (MT) steel-making capacity to achieve its 300-MT target by 2030, Steel Secretary Sandeep Poundrik said on Wednesday.

The top ministry official said if steel demand continues to rise and capacity additions don't take place, India may also become a net importer of steel.

India's steel capacity has reached 180 MT, and another 120 MT is needed to reach 300 MT, Poundrik said at a Ficci event here.

"We will need... about 120 MT of additional capacity, which means approximate investment of 120 billion dollars, which is 10 lakh crores in Indian rupees. And if that investment has to come, then our industry has to have that kind of profitability that we are able to make that investment," he said.

If that will not happen, and demand continues to rise against increase in capacity addition then probably by 2030, India will become a net steel importer, the secretary cautioned.

As far as steel demand is concerned, there is no issue. The steel demand has expanded 13 per cent in the first half of the year and per capita steel consumption is heading towards 100 kg.

"Coming to the issue of profitability, there have been concerns for almost a year, and especially in last few months that dumping is happening at the international level and steel prices have come down," he said.

Elaborating on steel industry issues, the official said Indian imports in the first half of this financial year have increased about 41 per cent while exports have gone down 36 per cent.

The prices are stressed and inventory levels in steel companies have increased from the usual 15-16 days to up to 30 days, he said, adding that the industry is facing a genuine problem.