NSP to help steel demand stay steady at 6% for  5 years, says report

Source: The Hitavada      Date: 06 May 2017 13:34:35

Business Bureau,

Helped by Government-led initiatives, including National Steel Policy (NSP), domestic steel demand is expected to grow by 6-6.5 per cent in the next five years, but the target reaching 300 tonne steel capacity by 2030 under NSP seems unlikely, said a report by Crisil.

Noting that the government envisages domestic steel consumption to grow 7 per cent through 2030 under the NSP,the rating agency said the consumption of the alloy has grown at a steady pace of 6 per cent, during the last decade (2006-07 to 2016-17). “Over the next five years, steel demand is expected to register 6-6.5 per cent growth driven by various government led initiatives in affordable housing and infrastructure sector, coupled with robust growth in automotive and capital goods segments,” the report said.

“A similar trajectory of growth in expected to continue even in long run, subject to continuation of government's initiatives. Also, NSP is expected to encourage in-house production of flat and alloy steel products, reducing their share in overall imports,” it added

The Union Cabinet approved the NSP 2017 on May 3, which seeks to enhance steel consumption, ensure high quality steel production, and create a technologically advanced and globally competitive steel industry. Among others, NSP targets to achieve 300 MT of steel making capacity by 2030 through additional investments of Rs 10 lakh crore by 2030-31. However, Crisil said, the Government's vision of adding 182 MT of new capacities in next 14 years seems unlikely.