Iron and steel industry

This presentation prepared and Presented by M.Fawad Arash Zafar in the M.SC Economics class at Lovely Professional University

1. Iron and Steel Industry in India Prepared and presented by: Mohammad Fawad Arash

2. Introduction: Iron and Steel Industry in India is on an upswing because of the strong global and domestic demand. India's rapid economic growth and soaring demand by sectors like infrastructure, real estate and automobiles, at home and abroad, has put Indian steel industry on the global map. According to the latest report by International Iron and Steel Institute (IISI), India is the 4th largest steel producer in the world.

3. History of Iron and Steel Industry inIndia Iron and Steel industry in the country has experienced a sustainable growth since the independence of the country. A humble beginning of the modern steel industry was reached in India at Kulti in West Bengal in the year 1870. But the outset of bigger production became noticeable with the establishment of a steel plant. It started plant in Jamshedpur in Bihar in 1907. it started production in 1912. The new township was named after Jamshed ji Tata. It was, however, only after Independence that the steel industry was able to find a strong foothold in the country. Excluding the Jamshedpur plant of the Tatas , all are in the public sector and looked after by Steel Authority of India Ltd. (SAIL).

4. Some other Industries: Bhilai and Bokaro Steel plant were set up with Soviet alliance. Durgapur and Rourkela came up with British and West German technical expertise, respectively.

5. The present scenario of the industry India has one of the richest reserves of all the raw materials required for the industry, namely land, capital, cheap labour , iron ore, power, coal etc. Yet we are 4th in the world ranking for production of steel. We produced 66.8 million tonnes in 2010-11, while China, at the top of the list, produced 626.7 million tonnes . Our per capita consumption of steel in India (at 50 kg per annum) is well below the world average (at about 200 kg per annum) and much below that of the developed world (around 350 kg per annum).

6. Vision 2020 of the Steel Industry in India The National Steel Policy – 2005 aims at increasing the total steel production of the country to 110 million tonnes per year (in 2019-20) from 38 million tonnes (in 2004-05). This was supposed to require a compounded annual growth of about 7.3%. The total production in 2010 was 66.8 million tonnes . The compounded annual growth from 2005 to 2010 has been more than 9% which is better than the expected growth. But most of these are a result of the brownfield expansion projects of the existing steel companies. But to continue with the same growth rate, we need new Greenfield projects.

7. India’s export of Iron and Steel

8. Imports:

9. Tata Steel Tata Steel is a top ten global steel maker and the world’s second most geographically diversified steel producer. Tata Steel was founded in India in 1907. Since 2004 the Company has expanded globally, acquiring Asian steel producers NatSteel and Millennium Steel (now called Tata Steel Thailand) as well as Europe’s second largest steel producer Corus (now called Tata Steel Europe Limited).

10. Tata Steel is part of the Tata Group, India’s largest industrial conglomerate. Both Tata and Tata Steel have a long history of charitable donations and social responsibility, with Tata spending approximately 4% of the Company’s profit after tax on corporate social responsibility initiatives. Tata Steel endeavors to improve the quality of life in the communities in which the Company operates. Tata Steel’s charitable projects have touched the lives of over 800,000 people in India.

11. Facts about Tata Steel Tata Steel is the world's 6th largest steel company. An existing annual crude steel capacity of 28 million tons. Asia's first integrated steel plant and India's largest integrated private sector steel company is now the world's second most geographically diversified steel producer. Tata Steel plans to grow and globalise through organic and inorganic routes. Its 5 million tonnes per annum (MTPA) Jamshedpur Works plans to double its capacity by 2010 .

12. Industry structure The Iron and steel Industry in India has 2separate divisions: Integrated producers Secondary producers Integrated Producers: Amongst the Integrated producers, the major producers include Tata Iron and Steel Company Limited (TISCO), Rashtriya Ispat Nigam Limited (RINL) and Steel Authority of India Limited (SAIL), who generate steel by converting iron ore. Secondary Producers: The Secondary producers like Ispat Industries, Lloyds steel and Essar Steel, create steel through the process of melting scrap iron. These are mainly small steel plants and produce steel in electric furnaces, using scrap and sponge iron. They produce both mild steel and alloy steel of given specifications.

13. II World War impact on Steel Industries During World War II, industry production increased sharply because of steel's importance to war mobilization . Some of this increase was a result of production returning to full capacity after the depression. India pushed forward for making Iron and Steel for Japanese Army. Meanwhile , the United States controlled 60 percent of the world's steelmaking potential.

14. The problems faced by the industry in present times Many steel giants signed for opining new industries with several state governments (especially Jharkhand, Orissa , Chattishgarh and West Bengal) for new projects but none of them have materialised . It has taken 5 long years for Tata Steel’s Kalinganagar ( Orissa ) project to complete the rehabilitation and resettlement process. JSW’s proposed Salboni plant (W.B) hasn’t been allotted the required amount of land, and moreover the government, recently, took control over about 400 acres of land bought by the company because of a state rule that any outsider can’t buy more than 24 acres of village land. POSCO is facing massive resistance from the natives of Jagatsinghpur ( Orissa ) for land acquisition while many other steel plants are awaiting aid from the government in terms of either land or infrastructure.

15. Processing of iron and steel MINING Mining is the first step in the production of iron and steel. Earth is excavated deep in search of iron ore. Breaking and cutting of iron ore takes place to receive raw iron. Raw Materials from the iron ore are put in a particularly hot fire lead in the embers of the fire. This is done to get the mixture of Iron Ore and Charcoal that is burnt with the help of a blast of air from hand worked bellows.

16. Conclusion : We develop economic as well as engineering indicators for productivity growth, technical change and energy consumption that allow us to investigate savings potentials in specific energy use as well as carbon dioxide emissions. We discuss our findings within a broader context of structural and policy changes in the sector. The economic analysis shows that productivity has been decreasing over time. The decline in productivity was caused largely by government protection regarding prices and distribution of steel and by inefficiencies in integrated steel plants that were reserved to the public sector. With liberalization of the iron and steel industry productivity increased substantially to positive growth rates. We further introduce cost effective and low cost potentials for reducing energy consumption as well as carbon emissions. In comparing Indian energy consumption to best practice energy consumption we show that energy savings of about 50% could be achieved. However, the implementation of initiatives towards energy efficiency is being hampered by barriers both of general and process specific nature occurring at the macro and micro level of the economy.

17. References : business.mapsofindia.com/ india-gdp /industries/iron-steel.htm - 37k www.fundoodata.com/industry-companies/iron-&-steel/173.h - 133k www.steelmint.com/ - 267k wiki.answers.com/Q/ Where_was_the_first_iron_and_steel_indust  - 73k www.ask.com/ Iron +And+ Steel + Industry

18. Any question … Thank you