MINISTRY OF STEEL Skip to main content
 Home 
Contact Us | Glossary
Sitemap
Feedback | Reports | Archives  | Tenders  Search
National Ambelam

MINISTRY OF STEEL
Government of India
IS/ISO 9001:2008
QUALITY MANAGEMENT SYSTEMS CERTIFICATION


Last Updated on : 08.07.2015

DEVELOPMENT OF INDIAN STEEL SECTOR SINCE 1991

Production of Iron & Steel for Sale | Import and Export of Iron & Steel | Apparent Consumption of Finished Carbon Steel | Additional Capacity Creation in Private Sector Since 1991

The economic reforms initiated by the Government since 1991 have added new dimensions to industrial growth in general and steel industry in particular. Licensing requirement for capacity creation  has been abolished, except for certain  locational restrictions. Steel industry has been removed from the list of industries reserved for the public sector. Automatic   approval of foreign equity investment upto 100% is now available. Price and distribution controls have been removed from January 1992, with a view to make the steel industry efficient and competitive. Restrictions on external trade, both in import and  export have  been removed. Import duty rates have been reduced drastically. Certain other policy measures such as reduction in import duty on capital goods, convertibility of rupee on trade account, permission to mobilise resources from overseas financial markets and rationalisation of existing tax structure for a period of time have also benefited the Indian steel industry.  


Production for Sale
a) Total Finished Steel Production for Sale

The production for sale of total finished steel (alloy+non-alloy) in the country was 91.46 million tonnes (mt) in 2014-15 as compared to 14.23 mt in 1991-92. The high share of the Majors and Other Producers in total finished steel production for sale is largely due to substantial availability of raw materials like sponge iron as well as due to the expansion of capacities and emergence of new units in these segments.

Total Finished Steel (alloy+non-alloy): Production for sale (million tonnes)

Year

Main
Producers

Majors and Other 
Producers

Grand
Total

% of share of
Majors and Other Producers

1991-1992

7.964

6.270

14.234

44.0

1992-1993

8.551

8.335

16.886

49.4

1993-1994

8.912

8.112

17.024

47.7

1994-1995

9.720

10.365

20.085

51.6

1995-1996

10.731

13.562

24.293

55.8

1996-1997

10.689

15.635

26.324

59.4

1997-1998

10.580

16.840

27.420

61.4

1998-1999

10.045

17.513

27.558

63.5

1999-2000

11.407

19.088

30.495

62.6

2000-2001

12.686

19.670

32.356

60.8

2001-2002

13.198

20.178

33.376

60.5

2002-2003

14.534

22.632

37.166

60.9

2003-2004

15.383

25.326

40.709

62.2

2004-2005

15.824

27.689

43.513

63.6

2005-2006

16.413

30.153

46.566

64.8

2006-2007

17.614

34.915

52.529

66.5

2007-2008

18.020

38.055

56.075

67.9

2008-2009

17.216

39.948

57.164

69.9

2009-2010

18.038

42.586

60.624

70.2

2010-2011

18.407

50.214

68.621

73.2

2011-2012

17.978

57.718

75.696

76.25

2012-2013

19.244

62.437

81.681

76.44

2013-2014

22.196

65.479

87.675

74.68

Source : JPC

Data on production for sale of total finished steel (alloy+non-alloy) for 2013-14 and 2014-15 is shown in the table below.

Total Finished Steel (alloy+non-alloy): Production for sale (million tonnes)

Period

ISP

Other 
Producers

Less: IPT/Own consumption

Grand
Total

% of share of
Other Producers

2013-14

45.16

50.42

7.91

87.67

57.5

2014-15

46.82

53.16

8.53

91.46

58.1

Source : JPC

Note: Effective 1.4.2014, JPC reporting system has changed and u nder the new system, the Main Producers & Majors of the earlier system are reported as ‘Integrated Steel Plants (ISP)’ and all others, not falling in this category have been grouped under the head, ‘Other Producers’. This reporting system, however, is for statistical use only.

(b) Pig Iron Production for Sale  

The total production for sale of pig iron was 9.70 mt in 2014-15 as compared to 1.59 mt in 1991-92. Earlier, pig iron was produced primarily by the integrated public sector steel plants, SAIL and RINL. In contrast, the private sector accounted for 91% of total production for sale of pig iron in the country in 2014-15.

Production for sale of Pig Iron (million tonnes)

Year

Main
Producers

Majors & Other
Producers

Grand Total

% share of Majors & Other Producers

1991-1992

1.490

0.100

1.590

06.3%

1992-1993

1.679

0.165

1.844

08.9%

1993-1994

1.977

0.273

2.250

12.1%

1994-1995

2.005

0.780

2.785

28.0%

1995-1996

1.813

1.060

2.873

36.9%

1996-1997

1.733

1.570

3.303

47.5%

1997-1998

1.711

1.687

3.398

49.6%

1998-1999

1.354

1.644

2.998

54.8%

1999-2000

1.226

1.955

3.181

61.5%

2000-2001

0.964

2.434

3.398

71.6%

2001-2002

1.016

3.055

4.071

75.0 %

2002-2003

1.107

4.178

5.285

79.1 %

2003-2004

0.966

3.980

4.946

80.5 %

2004-2005

0.625

2.603

3.228

80.6%

2005-2006

1.007

3.683

4.690

78.5  %

2006-2007

0.860

4.093

4.953

82.6%

2007-2008

0.936

4.348

5.284

82.3%

2008-2009

0.589

5.618

6.207

90.5%

2009-2010

0.731

5.153

5.884

87.6%

2010-2011

0.579

5.104

5.683

89.8%

2011-2012

0.502

4.869

5.371

90.65%

2012-2013

0.674

6.196

6.870

90.74%

2013-2014

0.552

7.398

7.950

93.06%

Source : JPC

Data on production for sale of pig iron for 2013-14 and 2014-15 is shown in the table below.

Pig iron: Production for sale (million tonnes)

Period

ISP

Other 
Producers

Less: IPT/Own consumption

Grand
Total

% of share of
Other Producers

2013-14

0.71

7.64

0.40

7.95

96

2014-15

1.21

9.02

0.53

9.7

93

Source : JPC

Note: Effective 1.4.2014, JPC reporting system has changed and u nder the new system, the Main Producers & Majors of the earlier system are reported as ‘Integrated Steel Plants (ISP)’ and all others, not falling in this category have been grouped under the head, ‘Other Producers’. This reporting system, however, is for statistical use only.

 (c) DRI - Production for sale

The production for sale of DRI or Sponge Iron has increased from 1.31 mt in 1991-92 to 20.38 mt in 2014-15. India has been the largest producer of DRI in the world since 2003.

Production for Sale of Sponge Iron

Year

Qty (million tonnes)

% change over last year

1991-1992

1.306

-

1992-1993

1.441

10.3%

1993-1994

2.396

66.3%

1994-1995

3.392

41.6%

1995-1996

4.442

31.0%

1996-1997

5.047

13.6%

1997-1998

5.325

5.5%

1998-1999

5.166

(-) 3.0%

1999-2000

5.320

3.0%

2000-2001

5.481

3.0%

2001-2002

5.658

3.2%

2002-2003

7.858

38.9%

2003-2004

9.877

25.7%

2004-2005

12.537

26.9%

2005-2006  

14.825

18.2%

2006-2007

18.345

23.7%

2007-2008

20.376

11.1%

2008-2009

21.091

3.5%

2009-2010

24.326

15.3%

2010-2011

25.081

4.2%

2011-2012

19.633

(-) 21.7%

2012-2013

14.329

(-) 27%

2013-2014

18.204

27%

2014-2015

20.378

12%

Source : JPC

 

Import and Export of Iron & Steel

Import of Iron and Steel

Year

Pig Iron

Total Finished Steel (Non-Alloy + Alloy)

Total Value (Pig Iron + Steel)

('000 tonnes)

('000 tonnes)

(Rs. In Crores)

1991-1992

152

970

1441.32

1992-1993

73

1143

1676.00

1993-1994

21

1119

1613.00

1994-1995

1

1775

2536.00

1995-1996

8

1617

3181.00

1996-1997

15

1632

3053.00

1997-1998

3

1648

2904

1998-1999

2

1194

N.A.

1999-2000

3

1678

N.A.

2000-2001

2

1491

2659

2001-2002

2

1373

2560

2002-2003

1

1663

3051

2003-2004

2

1753

3728

2004-2005

8

2293

6244

2005-2006

3

4305

11585

2006-2007

3

4927

15747

2007-2008

11

7029

24977

2008-2009

8

5841

30509

2009-2010

11

7382

25983

2010-2011

9

6664

26996

2011-2012

8

6863

27017

2012-2013

21

7925

39347

2013-2014

34

5450

30525

2014-2015

23

9320

44994

Source : JPC

Although India started exporting steel way back in 1964, exports were not regulated and depended largely on domestic surpluses. However, in the years following economic liberalisation, export of steel recorded a quantum jump. Subsequently, the rapid growth of domestic steel demand has led to a decline in the rate of growth of steel exports from India to ensure that domestic requirements are adequately met.

Export of Iron and Steel

Year

Pig Iron

Semis

Total Finished Steel 
(Alloy+Non-Alloy)

Total
Steel*

Total Steel : Value

('000 tonnes)

('000 tonnes)

('000 tonnes)

('000 tonnes)

(Rs. Crores)

1991-1992

-

5

368

373

283

1992-1993

16

154

756

910

708

1993-1994

620

585

1060

1645

1678

1994-1995

466

399

944

1343

1438

1995-1996

503

391

1350

1741

1939

1996-1997

451

300

1662

1962

2231

1997-1998

785

503

1934

2437

2512

1998-1999

276

174

1860

2034

N.A.

1999-2000

290

328

2782

3110

N.A.

2000-2001

232

194

2671

2865

N.A.

2001-2002

312

281

2709

2990

N.A.

2002-2003

629

460

4517

4977

N.A.

2003-2004

518

684

5207

5891

12132

2004-2005

393

261

4705

4966

15123

2005-2006  

440

388

4801

5189

17152

2006-2007  

707

665

5242

5907

18671

2007-2008

560

373

5077

5450

17771

2008-2009  

350

746

4437

5183

18978

2009-2010

362

625

3251

3876

15206

2010-2011

358

350

3637

3987

18433

2011-2012

491

198

4588

4789

21946

2012-2013

414

144

5368

5512

26912

2013-2014

943

486

5985

6471

31315

2014-2015

540

640

5596

6235

31283

Source : JPC; *Total Steel = Semis+ Total Finished Steel

 Apparent and Real Consumption of Total Finished Steel

Real Consumption is obtained from apparent consumption (i.e production + imports – exports +/- variation in stocks) of total finished steel after adjusting for double counting in flat products. The trend in real consumption of total finished steel is shown below, year-wise.

Year

Real Consumption of Total Finished Steel (million tonnes)

1991-1992

14.836

1992-1993

15.811 (6.6%)

1993-1994

16.114 (2.0 %)

1994-1995

19.550 (21.3 %)

1995-1996

22.370 (14.4 %)

1996-1997

23.294 (4.1%)

1997-1998

23.808 (2.2%)

1998-1999

24.710 (3.8%)

1999-2000

26.348 (6.6%)

2000-2001

27.649 (4.9%)

2001-2002

28.523 (3.2%)

2002-2003

30.677 (7.6%)

2003-2004

33.119 (8%)

2004-2005

36.377 (9.8%)

2005-2006

41.433 (13.9%)

2006-2007

46.783 (12.9%)

2007-2008

52.125 (11.4%)

2008-2009

52.351 (0.4%)

2009-2010

59.339 (13.3%)

2010-2011

66.423 (11.9%)

2011-2012

71.021 (6.9%)

2012-2013

73.482 (3.5%)

2013-2014

74.095 (0.82%)

2014-2015

76.994 (3.9%)

Source : JPC; figures in brackets indicate the percent increase over the previous year


Additional Capacity Creation in Private Sector Since 1991

After de-licensing of Indian iron and steel industry and as a result of the steps taken for creation of additional capacity in the private sector, projects involving a total investment of Rs. 30,835 crores equivalent to a capacity of approx. 13 million tonnes per annum were cleared by financial institutions.

Over time, with further opening up of the Indian economy, a focused reform process in place and a rapid but stable growth of the Indian economy, investments have flown significantly into the steel industry of the country and the country is likely to achieve a crude steel production capacity of 140-149 mt by the year 2016-17 as per estimates of the report of the working group on steel for the 12 th Five Year Plan. Major investment plans are in the States of Odisha, Jharkhand, Karnataka, Chhattisgarh and West Bengal. The government has also unveiled plans of developing four mega greenfield steel plants each of 6 mtpa, through the SPV route, at an estimated combined investment of $24 billion in the states of Chhattisgarh, Odisha, Jharkhand and Karnataka.

Global steel giants have also announced plans to set up integrated steel plants in the country either through setting up of green-field integrated steel plants in the country or strategic tie-ups, which is expected to introduce state-of-the-art technology into steel making. These include either independent projects like those of Posco (Odisha, Karnataka) and Arcleor-Mittal (Jharkhand, Karnataka) or joint venture projects with local companies like those of SAIL-Kobe, SAIL-Posco, JSW Steel-JFE, among others.

 

This Website belongs to Ministry of Steel, Government of India Content on this website is published and managed by Ministry of Steel. For any query regarding this website Please Contact Shri T. Srinivas, Joint Secretary, t[dot]srinivas[at]nic[dot]in.. The site can be best viewed in IE 9.0 and above or Mozilla 2.0 and above using 1024X768 resolution, This site is designed and hosted by National Informatics Centre (NIC)