India likely to become global metal hub

New Delhi, July 23: India is likely to become a global metal hub, given the enabling environment for the steel industry, and can even serve neighbouring countries like China and Vietnam, Tata Steel Managing Director B Muthuraman today said.

India has the potential to meet all domestic requirements, while serving countries like China and Vietnam as they have the demands but not the resources, he said.

''The Government needs to recognise that the metal industry can be a big engine for growth. We wish to create a vibrant 400 million tonnes industry,'' Mr Muthuraman said.

He said there was a need to earmark specific tracts of land near the coast or the source of raw material as the steel projects required large tracts of land.

Many states don't have rehabilitation policies which are a hindrance while acquiring land for the project. Indian steel industry will become uncompetitive unless captive raw material is provided.

However, he said, the natural resources must be used for the development of the country first.

Steel capacity creation in India is not matching the proposed demand. Imports are already shooting up and three years from now we will get into serious problems, he said at a Committe Meeting organised by CII.

National Manufacturing Competitiveness Council (NMCC) Chairman V Krishnamurthy said India has a large number of advantages to boast, and with engineering, metallurgical talent and natural resources like iron ore, coal, and other minerals, India can design steel plants and the equipment that goes into the plants.

''NMCC is expected to look into every sector and see how best it can become competitive and help India accelerate its growth,'' Dr Krishnamurthy said.

The Government needs to work on basic infrastructure like roads, rail networks, ports connecting the mines and the plants, water availability for the steel industry that determines the competitiveness of the entire country, he said.

UNI