DEVELOPMENT OF STEEL INDUSTRY THROUGH DIFFERENT PHASES OF INDIAN ECONOMY

Presented By SHRUTI SHAH (151) SOUMYA SAFEENA(160) TAMASREE ROY(167)

INDIAN STEEL INDUSTRY

India's Steel Industry is more than a century old India is the 5th largest producer of crude steel in the world Indian steel industry contributes about 2% of GDP. It produces 55.1 million tones of steel, a growth of 4.5% Rapid economic growth and demand by sector like infrastructure, automobile, real estate at home and abroad

MAJOR STEEL PRODUCING COUNTRIES

GROWING STEEL USUAGE

ROLE OF STEEL INDUSTRY IN INDIAN GDPCONSUMPTION

The domestic steel consumption was 44.28 million metric tonnes and increased by 8% The average growth rate of the Indian Iron and Steel Industry is 11.36% The construction projects all over India are major consumer of steel Steel exports increased by 17.36% an estimated amount of 2.46MT & steel imports increased by 2.8 % an estimated amount of 5.36 MT

DEVELOPMENT OF STEEL INDUSTRY IN THE PHASE I

After independence, Indian government took full control over steel sector. Industrial Development Regulation Act (IDAR) 1948 Industrial Policy Regulation (IPR) 1956 In 1959, govt approved setting up of privately owned EAF based mini plants. Prices were determined and announce by JPC (Joint Plant Committee). Steel exports began only in 1964.

DEVELOPMENT OF STEEL INDUSTRY IN THE PHASE II

MSTC Ltd. (Metal Scrap Trade Corporation Ltd.) was set up on the 9th September, 1964 as a canalizing agency for the export of scrap from the country. HSCL was incorporated in June 1964 As a continuation of phase I the exports increased in 1st 5 yrs of phase II A large quantity of steel was exported between 1964-1968

DEVELOPMENT OF STEEL INDUSTRY IN THE PHASE II(cont..)

The Bokaro plant was commissioned in 1972. From 1975 India again started exporting and touched the figure of 1.4 million tons of steel in 1976-1977 In 1973-85 growth of real value of output was stable at around 7.8%

DEVELOPMENT OF STEEL INDUSTRY IN THE PHASE III

CHANGE IN PHYSICAL ENERGY INTENSITY OF VARIOUS INDUSTRIES THE PHASE II

DEVELOPMENT OF STEEL INDUSTRY IN THE PHASE III

Indias share in world production of crude steel was 1.5% in 1981 In 1981, Congress passed the Steel Industry Compliance Extension Act Raised the minimum asset limit defining industrial houses from Rs 200 million to Rs 1 billion. 1989: SAIL acquired Vivesvata Iron and Steel Ltd. Many public sector units were established and thus public sector had a dominant share in the steel production till early 1990s. the steel industry continued to be under controlled regime

DEVELOPMENT OF STEEL INDUSTRY IN THE PHASE IV

IV Phase-1991, continued late, growth Rate-6.5%, nearly 9% from 2003 onwards except for 2008-09. Major developments that occurred at the time of liberalization and thenceforth were: 1. Large plant capacities that were reserved for public sector were removed; 2. Export restrictions were eliminated; 3. Import tariffs were reduced from 100 percent to 5 percent; 4. Decontrol of domestic steel prices;

DEVELOPMENT OF STEEL INDUSTRY IN THE PHASE IV

5. Foreign investment was encouraged, and the steel industry was part of the high priority industries for foreign investments and implying automatic approval for foreign equity participation up to 100 percent 6. System of freight ceiling was introduced in place of freight equalization scheme Steel production in India has grown from 17 MT in 1990 to 36 MT in 2003. It is expected that by 2011, the steel production in India will grow to 66 MT. The per capita-consumption of steel in India, according to latest available estimates, is only 29 kg. This is much less compared to the global average of 140kg.

FDI INVESTMENT IN INDIAN STEEL INDUSTRY FOR THE LAST 3 FINANCIAL YEARS
It is reported that the Foreign Direct Investment in steel for the past three financial years and the current year to April to December is given in the table below (Amount in Million)
(Source: Department of Industrial Policy & Promotion)

SL. No.
1.

Year (AprilMarch) 2006-07

FDI (In INR)

1281.51

FDI (in USD) 27.84 1.32 69.21

2.
3. 4.

2007-08
2008-09 2009-10(AprDec 2009)

53.48
3352.94 3945.17

81.57

KEY EVENTS
1907*: Tata Iron and Steel Company set up. 1913: Production of steel begins in India. 1918: The Indian Iron & Steel Co. set up by Burn & Co. to compete with Tata Iron and Steel Co. 1923*: Mysore Iron and Steel Company set up 1939*: Steel Corporation of Bengal set up 1948: A new Industrial Policy Statement states that new ventures in the iron and steel industry are to be undertaken only by the central government.

KEY EVENTS
1954: Hindustan Steel is created to oversee the Rourkela plant. 1959: Hindustan Steel is responsible for two more plants in Bhilai and Durgapur. 1964: Bokaro Steel Ltd. is created. 1973: The Steel Authority of India Ltd. (SAIL) is created as a holding company to oversee most of India's iron and steel production. 1989: SAIL acquired Vivesvata Iron and Steel Ltd. 1993: India sets plans in motion to partially privatize SAIL

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