Jamshedpur, Feb 27 (UNI) Tata Steel Managing Director B Muthuraman today urged the central and the state governments to ensure to provide captive raw materials to the new steel capacity for its speedy completion.
In a message which was read out at the three-day International Steel Conclave that began here this morning, Mr Muthuraman said, '' Creation of steel capacity is capital intensive and unless infrastructure and captive raw materials are offered, new steel capacities will not come up at a fast rate.'' He lamented that despite an enormous potential of steel consumption in our country, the creation of new steel capacities was always in doubts which, Mr Muthuraman felt, could cast an adverse impact on the speedy economic growth.
Mr Muthuraman hoped that the steel consumption in India would grow 10-15 percent per year for several years to come and the country's domestic steel consumption could reach a level of about 200 MT by 2020.
In fact, the increasing consumption of steel will help further for the economic growth, he opined.
The steel major MD viewed that the consumption of domestic steel might touch a level of over 500 MT per year on a sustainable basis in the coming years.
Mr Muthuraman said since the country had a competitive advantage to serve the steel needs to its neighbouring countries, a comprehensive plan was required to set up steel capacity of 500 MT per year.
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