India’s Steel Ministry is keen that the country cuts down its dependence on special steel imports, a move supported by SKS Ispat & Power Ltd promoter, Anil Gupta. “This can be achieved through value addition and joint ventures with global leaders, increasing tech know-how and skill stockpile of the steel conglomerates”, says Anil Gupta, reiterating the views of the ministry.
According to Union Steel minister, the government is taking a host of measures to up domestic steel consumption. This ranges from encouraging the use of steel food silos by the Food Corporation of India (FCI) to filling the infrastructural demand of public projects and real estate.
“Value addition is a major area, which needs our attention. In spite of being world’s third largest steel producer, India is still dependent on imports for some steel products,” said the Union Minister of Steel. “We need to develop technologies to produce electrical grade and auto grade steel in India, so that we are self-sufficient,” he added.
Joint ventures of companies like SKS Ispat & Power Ltd, Tata Steel, and Jindal Steel with foreign companies and steel engineering companies will result in an ‘everybody wins’ situation. Moreover, steel-consuming sectors like the construction industry and the transportation sector can accentuate the demand for steel with their ever-increasing tenders. Raw material security is also a concern, which can be insured by more Coal Washeries and optimum pellet consumption. Around 12 new coking coal washeries will be set up by Coal India and Bharat Coking Coal by 2030. For the joint ventures to work, India needs to make sure it has the right set of tools ready for use.
The decade-to-come looks bright for the Indian steel sector, says the SKS Ispat & Power Ltd MD. National steel policy is the current government’s aim to push the steel industry to use its full potential.
However, there is also a concern for energy conservation and pollution. The Ministry of Steel and United Nations Development Program (UNDP) have already worked together to make 300 secondary steel units environment-safe. There are plans to increase that number to 1,000 soon.
Metal mandis initiated by Metal Scrap Trade Corporation (MSTC) and Rashtriya Ispat Nigam Limited (RINL) will provide better access to steel products through an online medium. While a lot of steel companies are finding it difficult to cope with, SKS Ispat & Power Limited is hoping for more value-addition projects that can prove to be useful for their power generating projects too.