Steel Capacity In India Surpasses 161 Million Tonne, Industry Set For Growth: Secretary Nagendra Sinha

Commenting on the EU’s carbon border adjustment mechanism (CBAM), the minister said that the measure poses a serious challenge to the steel industry.

India’s steel capacity surpassed 161 million tonne, the Steel Secretary Nagendra Nath Sinha revealed on Tuesday. The minister said that the industry is set for continued growth while addressing the ‘4th Indian Steel Association (ISA) Steel Conclave’ event. 

According to the National Steel Policy, India has set a target of installing 300 MT steel capacity by the end of the decade, reported PTI. Sinha said, “ We have already crossed 161 million mt of capacity, comprising 67 MT by blast furnace-basic oxygen furnace (BF-BoF) route, 36 MT by electric arc furnace (EAF) and 58 MT by induction furnace (IF) route.”

The minister added that the steel sector in the country is going to witness consistent growth and noted that India is the world’s fourth-largest automobile market. He stated that the nation is projected to grow at a compound annual growth rate (CAGR) of 8 to 10 per cent over the next ten years. 

Further, Sinha said that the manufacturing sector witnessed a CAGR of 7 to 8 per cent and this is leading to an increase in demand for steel across both sectors. The minister underlined that the production-linked incentive scheme has fared well in the steel sector. The industry has witnessed investments worth nearly Rs 10,000 crore out of the committed Rs 29,500 crore.  

Regarding the challenges faced by the industry, Sinha said that the sector faces obstacles regarding carbon emissions and global market demands. “Embracing low carbon technologies, collaborating with stakeholders, and adopting green practices are essential for the industry's long-term sustainability and alignment with national and international environmental goals,” he added. 

Commenting on the EU’s carbon border adjustment mechanism (CBAM), the minister said that the measure poses a serious challenge to the steel industry. “Steelmaking, in general, has scope for a lot of improvement in terms of reduction in carbon emissions. I am confident that the industry champions are working towards realigning their strategies and we will soon be exporting low carbon steel as desired by the global markets,” he noted.