Indian mills to increase capacity up to 7 million tons by 2008

Indian mills to increase capacity up to 7 million tons by 2008

Reports from the industry reveal that Indian steel producers are going to raise their steel production capacity by 6.5-7 million tons within the next five years so as to meet the increasing domestic steel demand due to extensive infrastructure and construction projects according to analysts. Besides, it is believed that the expected rebound of the Chinese market is a another factor for Indian mills to expand their production capacities; such as Tata Steel, Ispat Industries, Jindal Vijaynagar Steel and Rashtriya Ispat Nigam. According to market sources Tata Steel will increase its capacity up by 1 million tons, whereas Ispat Industries Ltd. is planning to raise its steel capacity by 1.5 million tons in two phases. In the first phase to be commenced in June company will increase its coil coating plant's capacity, located in Dolvi, to 2.4 million tons from its current level of 1.5 million tons, thereafter to 3 million tons in March 2004. Likewise, Rashtriya Ispat Nigam, which is a state owned company, will increase its steel plants capacity to 10 million tons until 2020 from 3.5 million tons. Upon the completion of the first phase in 2007, capacity will be grown up to 5 million tons. Another Indian steelmaker Jindal Vijaynagar Steel is going to improve its capacity from 1.6 million tons by 2.5 million tons with a cost of Rupees 25.000 million ($530 million).