India’s steel industry requires an investment of $120 billion (₹10 lakh crore) to boost capacity from 180 million tonnes (MT) to 300 MT by 2030, Union Steel Secretary Sandeep Poundrik said during a panel discussion at FICCI’s 97th AGM and Annual Convention.
Poundrik underscored the importance of industry profitability and policy support to achieve this ambitious target. “India’s per capita steel consumption is nearing 100 kg — a critical inflection point historically associated with accelerated growth. In the first half of FY2024-25 alone, steel consumption grew by 13% due to increased public spending on infrastructure,” he said.
He reiterated the urgency of capacity expansion to meet domestic demand and avoid dependence on imports. “If we fail to add 120 MT of capacity by 2030, India risks becoming a net steel importer,” he added.
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Poundrik acknowledged industry concerns about dumping and its impact on profitability. “Indian steel imports rose by 41%, while exports declined by 36% in the first half of this fiscal year. Steel prices are depressed, and inventory levels at steel companies have doubled to 30 days from the usual 15-16 days,” he said.
While tariff measures like raising basic customs duty (BCD) are being examined, their impact could be limited. “Nearly 62% of our imports come through free trade agreements (FTAs) and wouldn’t be affected by BCD hikes. Such measures would only impact 38% of imports,” he noted.
The steel secretary also outlined alternatives like safeguard and anti-dumping duties but pointed out that these require industry petitions to the Directorate General of Trade Remedies (DGTR).
Privatisation and disinvestment
The conversation also touched on the privatisation and disinvestment of underperforming public sector steel units, including Rashtriya Ispat Nigam Limited (RINL).
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“RINL is in deep financial crisis, and a 2021 Cabinet decision supports its disinvestment. While there are practical constraints delaying the process, there is a case for privatising poorly performing units to bring in private investment and efficiency,” Poundrik said.
India’s steel sector is predominantly private, with 150 MT of capacity out of a total 180 MT. However, some of the 30-MT capacity controlled by public sector units faces operational challenges. “To meet the 300 million tonne capacity target, private sector investment is indispensable, regardless of whether disinvestment takes place,” he added.
Poundrik stressed the need to strike a balance between domestic industry profitability and growing demand. “The industry’s ability to invest hinges on profitability. If profitability remains low due to dumping and depressed prices, the required investments won’t materialise,” he warned.
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