Huge fresh capacity addition in steel sector is in pipeline

New Delhi, Sep 13 (UNI) The installed capacity of steel production including that of sponge iron is expected to witness a quantum jump over the next three to five years.

The gestation period in a steel plant is around four to five years and 105 entreprenuers have already signed Memorandum of Understanding (MOU) with just three State Governments of Jharkhand, Orissa and Chhattisgarh amounting to the addition of 173.836 Million Tonnes per annum (MTPA) of fresh capacity .

According to official sources, the lions share of thirty eight MOU's amounting to over 96 MTPA was signed by the Government of Jharkhand closely followed by 36 MOU's by Orissa Government for the addition of 51.955 MTPA. A total of 31 new MOU's were signed by the Government of Chhattisgarh for creating fresh capacity addition of over 25 MTPA.

The sources said all these MOU's were signed over the last two years period and large number of them have already been commissioned partially. But in rest of the cases, land acquisition has been made and the implementation work is in full swing.

Currently, the installed capacity of the steel plants in the country is estimated at around 49 MTPA excluding that of the sponge iron and their working capacity is placed at 43 MTPA while the actual production was estimated at 38 MTPA, the sources added.

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