India’s Iron Ore Reserves Need to be Culled Out to Secure Better Steel Production
Speaking about the challenges face by steel manufacturing industry in India Vinod Nowal who is the deputy managing director of JSW Steel Limited felt that India has huge iron ore resources and it can fulfill the requirements of all the steel plants without depending on imports.
“However, our government needs to take proactive steps to simplify mining procedures so that this iron ore can be utilized efficiently for steel production in the country. If you look at it broadly, India is self-sufficient in iron ore resources but proper mining legislation is required to channelise this resource. Besides this, there needs to be proper connect with the mining companies and the steel manufacturers so that the domestic iron ore resources are utlilised properly. Besides, the huge cost of transportation of iron ore from the mines to the steel plants in India is a major challenge as the cost is one of the highest in the world. Due to this, our country’s iron ore resources are not being fully utilized”, said Nowal.
India fares very low in per capita steel consumption when compared to many other countries. It is currently 68kg when compared to a per capita global average steel consumption of 250kg. In India, more infrastructure development has to take place to increase the per capita steel consumption. Compared to this, China has seen robust growth in its infrastructure development that requires huge amount of steel. China consumes almost 50 per cent of the world’s steel. Steel is very vital for the country’s infrastructure development and is around 1-1.5 per cent of the country’s total GDP. I feel that steel consumption in India will only grow with the times to come.
In India, JSW steel plants are in seven locations as well as in foreign locations too, with two in the United States and one in Italy.
In India, the company aims to reach a production capacity of around 40-45 MTPA by 2030. Currently, we have around 19 MTPA, which is the combined capacity from all our plants in India. With current investments we aim to reach 24 MTPA by 2020 from our Indian operations. At the same time, we have a global presence and are present in around 100 countries.