Miners to add 20 million tons steel capacity in five years

Fri 20 Jun 2008

NEW DELHI: Merchant miners plan to add 20 million tons of steel capacity in the country within five years at an investment of about Rs 80,000 crore, an industry official on Thursday said.

This comes at a time when the mining industry is fighting against the imposition of 15 per cent ad-valorem duty on export of iron ore, which is likely to hit the revenues of merchant miners by an estimated Rs 8,000 crore.

"We envisage adding 15-20 million tons of steel capacity in the country in five years with an estimated investment of Rs 80,000 crore," Federation of Indian Mineral Industries (FIMI) President and Executive Director of MSPL Limited Rahul N Baldota told reporters.

Among the leading iron ore mining firms that plan to set up steel units include MSPL, Rungta Mines, MEL, BMM Ispat and Brahmi Steel. About 100 sponge iron makers too are in the line for adding addition capacity, he added.

While MSPL and Rungta Mines intend to set up 5 million tons capacity each steel project, BMM Ispat and Brahmi Steel's proposed capacity would be 3 million tons each. The sponge iron producers are expected to add about 2 million tons steel capacity to their existing 3 million tons.

The miners said they have already submitted formal proposals for their proposed projects to respective state governments.

"In some of the cases, works like land acquisition and ground breaking has kicked off," Baldota said.

Source Economic Times India

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