INDUSTRY UPDATES On 2nd November, 2012


INDUSTRY UPDATES
On 2nd November, 2012
STEEL, METALS AND MINING
Arcelormittal gets 2569 acres in Bellary to set up a six million TN steel plant at an investment of Rs. 30K CR
A day after it posted its first ever quarterly net loss due to slowdown in China and a weak market in Europe, ArcelorMittal, the world's largest steel producer has some reason to cheer. ArcelorMittal has received allotment of 2,569 acres in Bellary, Karnataka, where it proposes to set up a six-million tonne steel plant at an investment of Rs 30,000 crore.

"We have made progress on land acquisition in Karnataka. The state government has transferred the 2,569 acres of private land in the company's name and the process to transfer another 136 acres of government land is underway. The process of getting various clearances including crucial environment clearance is underway. We have also applied for mining leases which are critical for the project. We are focusing on getting all relevant clearances," an official spokesperson of ArcelorMittal India said.

However, in the absence of raw material linkages, particularly without assured supplies of captive iron ore, it is uncertain whether ArcelorMittal will be able to go ahead with construction of the plant anytime soon.

Alongwith the steel plant, ArcelorMittal also plans to set up a 750 MW power plant as part of the project.

"It's still a long way to go before the project breaks ground. This is just the first step. For large integrated steel projects like these, apart from regulatory approvals, adopting an appropriate model of sustainable development will also emerge a key issue," a senior research analyst at Emkay Securities said
(Economic Times)
India to become second largest steel producer soon – Minister

As per government estimates, India will soon become the second largest steel producer in the world

Indian steel minister Mr Beni Prasad Verma while chairing a meeting of a parliamentary consultative committee to review the functioning of RINL said “India will soon become the second largest manufacturer of steel in the world. Steel capacity in the country has increased from 66 million tonne in 2009 to 90 million tonne in 2012.”

The Steel Minister said that the per capita steel consumption in the country has risen from 38 kg to 59 kg.

China is the number one producer of steel, followed by Japan and the US at second and third places, respectively. India slipped one rank to become the fourth largest steel producer in 2010, with 68.3 million tonne of output.
(Economic Times)
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