Keeping in mind that the
country has more than 7 lakh cars and over 4 lakh trucks and buses which have
reached end-of-life stage, the Indian market has a huge potential for
auto-shredding. By 2025, around 28 lakh cars and 12 lakh trucks and buses will
reach their end-of-life stage. Reiterating this point, Steel Minister Chaudhary
Birender Singh informed that the MSTC-Mahindra Intertrade state-of-the-art auto
shredding plant is likely to be functional in 2018.
The Minister also emphasised that the Indian
steel industry needs to meet the entire domestic demand of high-grade
automotive steel, electrical steel and special steels from domestic production.
He stated this while addressing the ‘Make In Steel’ Conference in the Capital.
Those present at the conference included Dr. Aruna Sharma, Secretary, Steel
Ministry, P.K.Singh, Chairman, SAIL, Prashant Ruia, MD, Essar Steel and Rita
Singh, CMD, Mesco Steel.
The Minister informed that the
government was examining the feasibility of setting up scrap-based steel plants
in India. “These will be on the lines of ‘Melt & Manufacture’ steel
technology in USA. Scrap-based steel plants are environment-friendly,
energy-efficient and cost-effective. These will have the capability to produce
special high-quality steels, a pre-requisite for Make in Steel. I would like
you to deliberate on the cost-benefit analysis of setting up scrap based steel
plants in North and West India. These regions are important from the perspective
of scrap-availability and steel import hubs,” he said while addressing experts
from the steel industry.
India imports around 6 million
tonnes of scrap steel every year and is the second largest importer of scrap
after Turkey. By 2025, the Minister informed, India will be able to generate
7.5 million tonnes of scrap every year.
“We are capable of producing auto-grade,
defence-grade and other special steels in India. What we need to do is to push
ourselves and to come out of our comfort zones. Then and then only can we be
self-sufficient and strong,” he said.
Emphasising on the importance
of steel industry, the Minister noted that it is important for the country
because it has one of the highest economic linkages in overall GDP. Steel has
an output-multiplier effect of around 1.4 times on GDP, so if steel industry
grows by 1 per cent, its proportionate impact on GDP would be 1.4 %. The employment-multiplier
effect of steel is around 7 times, that is, with increase in output, steel
industry has the potential to create 7 times the job opportunities, in upward
and downward industries.
“In 2016, India retained its position as the
fastest growing major steel economy in the world. We are all proud of it, and
we are confident that India would continue to lead the growth trend in world
steel industry. All of us will have to work together for it,” he added.
Asking the industry to focus on five important
thrust areas, the Minister said that in order to make it easy to remember, the
government has coined an acronym ‘PRIDE’ that aptly sums up the way forward for
the steel industry.”P stands for production & productivity, R for Research
& Development, I for Indian-made steel, D for Demand of Steel and E for
excellence in quality. Each of these areas is important from the perspective of
‘Make in Steel’, which I understand as maximising usage of steel in different
segments of industry,” the Minister explained.
“As far as the first letter P
in PRIDE is concerned, India is on its way to become world’s second largest
steel producer. The gap between India and Japan was 16 million tonnes in 2015,
which has come down to 9 million tonnes in 2016. India’s share in global steel
production was 5.5 % in 2015, which has increased to 5.9 % in 2016. So as far
as production of steel is concerned, we are on the right path,” he informed.