India’s capacity addition by its domestic steel industry during the 2015 calendar year has been pegged at 3 million mt, taking total domestic production to 108 million mt for the year, according to data announced by Indian’s Ministry of Steel.
According to a ministry official, the 2.8 percent growth in capacity addition during 2015 was a setback to the target of ramping up domestic steel production to 138.8 million mt per year by 2017 which would require an average annual growth in capacity addition of 9.8 percent.
The official said that, considering the rate of new capacity growth in the previous year, the target of domestic steel production of 138.8 million mt per year will not be achieved before 2019, two years behind schedule subject to improvements in the overall investment climate and average industry capacity utilization improving to at least 90 percent from 80 percent during 2015.