India's Ministry of Steel has said that delays in steel project implementations will result in the country failing to meet the projected steel demand of 145 million mt by 2015-16, an official at the ministry said on Monday, August 13.
After reviewing all the steel projects under implementation in the country, the ministry has concluded that the delays in adding new capacities will result in
India having to import an estimated 50 million mt of steel within the next three to four years, the official said.
India's current steel
production capacity is estimated at 80 million mt per year.
According to estimates made by the ministry, domestic steel demand in the current year exceeds 110 million mt and is forecast to rise to 200 million mt by 2020 and 500 million mt by 2050, he added.
The review revealed that 35 small and medium steel projects entailing an aggregate investment of $12.63 billion have not commenced because of regulatory hurdles like land acquisition, environmental clearances and transportation linkages, even though memorandums of understanding between investors and provincial governments were signed in 2008.
These projects exclude mega steel projects announced by steel giants like POSCO and ArcelorMittal which have made no headway for the last six years, the official said.