Indian Steel Industry.

Steel Industry post Independence

After independence India developed Steel plants with foreign collaboration and later developed its own indigenous technology.

Steel PlantCollaborationYearPlace
Bhilai Steel PlantSoviet Union1955Durg, Chhattisgarh
Hindustan Steel LimitedWest Germany1959Rourkela, Odisha.
Hindustan Steel LimitedBritain1962Durgapur, Westbengal.
Bokaro Steel PlantSoviet Union1964Bokaro, Jharkhand
Salem Steel PlantIndigenous1982Salem, Tamilnadu.
Vishakhapatanam Steel PlantIndigenous1992Vishakhapatanam. Andhrapradesh.
Vijaynagar Steel PlantIndigenous1994Bellari Karnataka.

Current Status of Steel Industry

  • India is the world’s second-largest producer of crude steel, with an output of 125.32 MT of crude steel and finished steel production of 121.29 MT in FY23.
  • India’s steel production is estimated to grow 4-7% to 123-127 MT in FY24.
  • The annual production of steel is anticipated to exceed 300 million tonnes by 2030-31.
  • It is anticipated that per-person steel consumption will grow to 160 kg.

Government initiatives in this sector are as follows:

  • Under the Union Budget 2023-24, the government allocated Rs. 70.15 crore (US$ 8.6 million) to the Ministry of Steel.
  • In addition, an investment of Rs. 75,000 crore (US$ 9.15 billion) (including Rs. 15,000 crore (US$ 1.83 billion) from private sources) has been allocated for 100 critical transport infrastructure projects for last and first mile connectivity for various sectors such as ports, coal, and steel.
  • The Union Cabinet, Government of India approved the National Steel Policy (NSP) 2017, as it intends to create a globally competitive steel industry in India. NSP 2017 envisage 300 million tonnes (MT) steel-making capacity and 160 kgs per capita steel consumption by 2030-31.
  • The Ministry of Steel is facilitating the setting up of an industry driven Steel Research and Technology Mission of India (SRTMI) in association with the public and private sector steel companies to spearhead research and development activities in the iron and steel industry at an initial corpus of Rs. 200 crore (US$ 30 million).
  • The Government of India raised import duty on most steel items twice, each time by 2.5% and imposed measures including anti-dumping and safeguard duties on iron and steel items.

Indian Iron ore Resources

India has been bestowed with large resources of Iron ore having fifth highest iron ore reserves in the world, major economic deposits of iron ore are associated with volcano-sedimentary Banned Iron Formation (BIF) of Precambrian Age.

Hematite (high grade/Industrial Grade) and Magnetite are most prominent iron ore found in India, around 96% of Hematite resources are in Orissa, Jharkhand, Chattisgarh, Karnataka and Goa (refer to the Map).

State wise Total Resources of Hematite Iron ore as on 1.04.2010

Total Resources of Iron ore as per United Nations Framework Classification as on 01.04.2010

Iron Ore TypeBillion Tonnes
Hematite17.88
Magnetite10.64
Total Resource28.52

Map of Major Iron Ore resources and National Steel Plants.

Map is indicative not accurate.