The steel sector has been facing concerns on profitability due to excessive dumping, which has led to international prices being depressed, and industry's demand for an anti-dumping duty is under 'active consideration', Steel Secretary Sandeep Poundrik said on November 20.
He was speaking at the curtain raiser ahead of FICCI's 97th AGM and Annual Convention.
Industry's inventory levels have increased from 15 days to 30 days, Poundrik said, as consumers have increased steel imports in H1FY25 by 41 percent on year. At the same time, steel exports have fallen by 36 percent in April-September 2024, worsening the trade balance.
The Secretary added that 62 percent of India’s steel imports come from Free Trade Agreement (FTA) partner countries. “This means that any increase in tariffs may not effectively curb imports from these countries, which complicates the situation further,” he explained.
Urgent Need for Investment
If India does not invest to increase steel manufacturing capacity, then the country will become a net importer by 2030, he added. "India need Rs 10 lakh crore of private investment in steel manufacturing, to increase capacity by 120 million tonne," Steel Secretary said.
By 2030, we will need 300 million tonnes of steel manufacturing capacity to meet the growing demand,” he said.
He pointed out that per capita steel consumption in India is nearing 100 kilograms and that steel consumption has grown by 13 percent this year.
Strategic Disinvestment of Steel PSUs
The Secretary also indicated a strong case for disinvestment in steel Public Sector Undertakings (PSUs), particularly those in financial distress. “Out of the 180 million tonnes of current steel capacity in India, only 30 million tonnes come from PSUs. There is a case for disinvestment of steel PSUs like RINL, which are in deep financial crisis,” he said.
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