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MAINS
: Sample Notes For Geography Optional
IRON AND STEEL INDUSTRY
Vijaynagar Steel Plant
- Located near Hospet in Bellary District of Karnataka
- Production of mild steel is the special feature
- Iron ore from nearby mines in Karnataka
- Coal from Sringareni in Andhra Pradesh
- HEP from closely located Tungabhadra Dam
MINI STEEL PLANTS
- Secondary units using steel scrap and sponge iron
as raw material; and electric arc and induction furnaces
for processing
- Produce mild and alloy steel especially stainless steel
- Located away from integrated plants to meet local demands
- Mainly concentrated around urban areas
GROWTH AND DEVELOPMENT
- Indians known for art of smelting iron in early times e.g. Mehrauli
Pillar. But first I&S unit on modern lines was set up
in 1830 at Porto-Nova (T.N) - not succeeded.
- Other attempts in second half of 19th century - same fate.
- Real beginning in 1907 with setting up of TISCO
Plant at Sakchi (now Jamshedpur)
- 1919 - IISCO (Indian Iron and Steel Company)
set up at Burnpur
- 1923 - Mysore Steel Works set up at Bhadravati.
Now called Vishvesvaraya Iron and Steel Works (VISW)
Rapid growth after independence
- The development of I&S industry was envisaged during first Five
Year Plan (FYP), but it was during Second FYP that three integrated
steel projects were started at Bhilai (with erstwhile USSR's Technical
and Financial support), Rourkela (with Germany's assistance) and
Durgapur (with U.K's assistance)
- During Third FYP, Bokaro Steel Plant was started (Production
started in 1972).
- Three more steel plants planned during IV FYP to meet the requirement
of steel.
- Salem (T.N.)
- Vizag (A.P.)
- Vijayanagar (Hospet district in Karnataka)
- Coming up of SAIL in 1973 provided an umbrella corporation for
managing plants in public sector.
Slow Growth (1950-60)
- New PSUs had yet to start production
- Low capital availability
- Low installed capacity
- Low Demand for the finished products
Exponential growth (1960 - mid 90s)
- Started with coming up of Bhilai, Durgapur and Rourkela
Plants
- Expansion of existing plants
- Industrialization took place at a faster rate,
therefore higher demand for steel
- Increased per capita consumption
Plateau Section (Stagnation) (Mid 90s
- 2001)
- After liberalization, tertiary sector started
becoming more important
- Losses of PSUs mounted high pressure on the
plants themselves
- Competition from abroad
Impact of Liberalisation
- After decades of state orchestrated industrial development,
the government going by the experience world over decided to launch
the process of liberalization and the steel sector was also opened
to international market and associated competition.
- With the start of new millennium, increase in production because
of infrastructure development and exports. Annual GR of Production
2001-02 - 3.7% and 2002-03 - 8%.
FUTURE PROSPECTS OF STEEL INDUSTRY
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The recent upswing in the international steel
market has been a booster dose for Indian steel industry but
the real party can begin only when the domestic market offers
right environment and opens up avenues for long-term sustenance
and growth.
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The potential for growth of this sector is
enormous. This can be gauged from the fact that the per
capita consumption of steel is still around 29
kg whereas the world average is 150 kg. Even to equal
the world average, with its population over a billion, will
have to touch 150 million tones (present consumption 29 million
tones).
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Generation of such kind of demand is dependent
on health and rate of growth of other sectors of economy
like roads, power, railways, ports, drinking water,
housing and manufacturing.
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New Road Projects estimated
to cover around 10,000 kms, four laning of existing roads is
also planned. These will be a good source of new demand for
steel.
-
As the country will need more Greenfield
capacities in the coming years, the steel sector can
hope to get the required impetus for steady growth.
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Track renewal plans of railways
for about 35000 kms. This will boost the demand for steel in
a major way. More high-speed trains, new demand for coaches
and wagons, and building of underground railway system will
help boost its demand.
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