(a) whether the National Steel Policy envisages indigenous steel production of 110 MT per
annum by 2019-20;
(b) if so, the details thereof and the shares of public and private sector units therein; and
(c) the details of the new steel production units and expansion programme of the existing
units during the next five years?
THE MINISTER OF STATE IN THE MINISTRY OF STEEL(DR. AKHILESH DAS)
(a) Yes, sir.
(b) The long-term goal of the National Steel Policy (NSP) is that India should have a modern
and efficient steel industry of world standards, catering to diversified steel demand. In order
to achieve the long term goal alongwith global competitiveness in terms of cost, quality and
product-mix and global benchmarks of efficiency and productivity it is envisaged in the NSP that
a indigenous production of over 100 million tonnes of steel per annum will be required by 2019-20
from the 2004-05 level of 38 million tonnes, implying a compounded annual growth of 7.3 percent
per annum. The NSP does not determine the share of public sector and the private sector in the
estimated total indigenous production of steel of over 100 million tonnes by 2019-20.
(c) The growth in the steel sector is driven by the growth in the Indian economy. The Indian
economy has been growing at a sustained rate of 8%-9% per annum and resulted in much higher demand
for steel and consequent expansion plans in the steel sector. As per the latest estimates the steel
production capacity in the country will be 124.06 million tonnes by 2011-12. The break-up of this
estimated capacity in respect of major steel producers is given below:-
(In million tonnes as on 01.04.2007 ) Investor Existing Capacity Expansion Plan Total Capacity 2011-12 (Most Likely) Brownfield Greenfield Steel Authority of India Ltd. (SAIL) 12.84 12.00 - 24.84 Rashtriya Ispat Nigam Ltd. (RINL) 2.90 3.90 - 6.80 Tata Steel 5.00 5.00 3.00 13.00 Essar Steel Holdings Ltd. 4.60 3.90 6.00 14.50 JSW Steel Ltd. 4.10 6.90 - 11.00 Jindal Power & Steel Ltd. 1.20 4.80 4.45 10.45 Ispat Industries Ltd. 3.00 2.00 - 5.00 Other & Secondary Steel 23.20 2.00 13.27 38.47 Total 56.84 40.50 26.72 124.06